The Dow Jones plummeted 900 points, over 3% on Monday, which was one of it’s biggest drops in years. The S&P 500 dropped 100 points, also three percent as fear spreads from the mounting death toll from the coronavirus world wide. Nobody knows how to contain the virus and the scenario has gotten scary enough to where comparisons are being made to the book by Michael Crichton, “Andromeda Strain.” The Hill:
The declines follow reports that countries beyond China are now struggling to contain the spread of the coronavirus. South Korea raised its alert level to the highest level as infections topped 830, while Italian officials worked to contain an outbreak of 220 cases and Iranian officials confirmed 61 cases.
The vast majority of the 78,000 cases of the virus are in China, where more than 2,400 people have died from the illness.
Steps to contain the virus have disrupted air travel and some businesses dependent on Chinese manufacturing, including supply chains for electronics.
Last week, a Goldman Sachs analysis warned that investors weren’t taking the coronavirus seriously enough, and that markets were due for a correction.
Some economists have predicted the virus will weaken growth in the near term, but also expect markets and the global economy to bounce back quickly when the spread of the virus is under control.
That’s the big “if” right now, is when will the spread of the virus be under control. So far, the strain has proven itself to be virulent and elusive. Do not look for international travel to go back to anything resembling normal any time soon.