Coronavirus Continues to be a Catalysts

News about the coronavirus continues to have an impact on global markets. 

China’s National Health Commission has confirmed more than 800 new cases of the virus in China. Additionally, South Korea has reported more than 200 new cases within it’s borders. As for the U.S., a total of 34 cases have now been confirmed.

As more cases are reported outside of mainland China, markets continue to respond with investors fearful of the economic impact the virus continues to have. 

Top 3 U.S. Stock Indices Fall

The Dow Jones Industrial Average dropped 227.6 points, closing at 28,992.4 marking a 0.78% decrease. 

The S&P 500 took a bigger hit and fell by 1.05%, closing at around 3,337.4.

As for the Nasdaq Composite, the third of the top 3 most followed U.S. stock indices after the two previously mentioned, a decline of 1.79% to 9,576.6 was seen.

It seems in light of recent coronavirus news, investors are ditching stocks and putting their money into bonds.

30-Year U.S. Bond Rate Hits Record Low

As the coronavirus continues to negatively affect market sentiment, traders are loading up on bonds. 

So much in fact that the 30-year U.S. bond rate has been pushed to its lowest level – ever. Furthermore, gold has shot up to its highest level in seven years. Some are speculating it may continue and reach levels at $1,700.

Major Tech Stocks Drop

The ‘FAANG’ group –  Facebook, Amazon, Apple, Netflix, and Google (Alphabet) – have all closed in the red, ranging from 1.5% to 2.7%.

Another significant tech stock, Microsoft, saw an even bigger slump down to 3.16%. This made it one of the worst performing Dow stocks today.

As for Virgin Galactic (SPCE), after having a crazy bull run this week with gains reaching around 30%, the stock saw a decline of 9.10% going from a high of 36 before closing at 33.87.

What’s Next?

As more news emerges about the coronavirus, investors will continue to keep an eye on it and react accordingly (as they have been).

Furthermore, Berkshire Hathaway’s Warren Buffet will publish his highly-anticipated annual shareholder letter on Saturday. Buffet’s letter usually gives investors an idea as to how he and his partner, Charlie Munger, view the current state of the stock Market. This tradition goes all the way back to 1977.