New York Stock Market Opens Sharply Lower Amid Virus Fears (Comprehensive)

[Asia Economy New York=Correspondent Baek Jong-min] Concerns over the spread of the novel coronavirus infection have caused a sharp decline in the US stock market following Asian markets.

[Image source=AP Yonhap News]

On the 26th (local time), the Dow 30 Industrial Average in the New York stock market showed a drop of more than 500 points compared to the previous trading day immediately after the opening. Although the decline slightly narrowed afterward, as of 10 a.m., it was trading at 28,592.24, down 397.49 points (1.37%).

The S&P 500 index also recorded 3,249.89, down 45.58 points (1.38%) at the same time, and the Nasdaq initially fell more than 2% at the opening but slightly reduced the decline, trading at 9,159.20, down 155.71 points (1.67%) compared to the previous day.

News that the death toll from the novel coronavirus pneumonia in Wuhan, China, has risen to 81 and the number of infected people to 2,862 is triggering selling pressure in the market. Analysts say that concerns over the spread of the novel coronavirus infection centered in China could have serious impacts not only on China but also on the global economy, leading to a sell-off.

Due to this news, the Japanese Nikkei index fell about 2% the previous day, and in European markets, Germany's DAX index dropped 2.6%, showing that global stock markets are significantly affected by the novel coronavirus.

By sector, airline and travel-related stocks such as Delta Air Lines, American Airlines, Wynn Resorts, Sands Resorts, and Expedia are leading the decline.

On the other hand, safe-haven asset prices are rising. The 10-year US Treasury yield fell to 1.61%, and gold futures rose 0.6%. The fear index (VIX) also increased from 14.5 last week to 18, indicating that fear sentiment is spreading in the market.