Major US stock market indexes nosedived once again and fell sharply early Thursday as President Donald Trump’s address disappoints investors. Analysts said that Trump’s speech was not able to quell concerns over the possible economic down from the coronavirus – which is now officially declared as a global pandemic by the World Health Organization (WHO).
The drop comes after the Dow Jones Industrial Average ended its historic 11-year bull market run by closing in a bear market. As of 1:17 a.m. ET Thursday, Dow futures were down 885 points, implying a loss of 845.22 points at the open. S&P 500 and Nasdaq 100 futures were also sharply lower. Earlier, Dow futures fell more than 1,000 points.
On Thursday, President Trump announced that the government is suspending all travels to and from Europe for 30 days in hopes of containing the spread of the virus. Furthermore, Trump also assured its citizens that the government would provide financial relief for workers who are ill, caring for others due to the virus or are quarantined.
However, it seems like investors are not very happy with the White House’s response to the pandemic. Analysts said that investors are looking for more robust financial policies that would potentially counter the economic slowdown caused by the COVID-19 outbreak.
“The crux of the angst investors feel as the coronavirus spreads surround what might happen to consumer spending,” wrote Scott Wren, senior global market strategist at Wells Fargo Investment Institute.
“Consumers sitting at home and not out spending money because they fear catching the coronavirus is the ultimate negative outcome,” he added. “It has been the U.S. consumer who has been driving the recovery bus during this long expansion.”
The COVID-19 outbreak has already infected more than 110,000 people across at least 110 countries and territories, with over 4,000 deaths worldwide, the data from the World Health Organization revealed.
