US stocks fall for seventh consecutive day as coronavirus fears increase
US stocks opened down again today for the seventh straight day as investors continued to sell after new cases of coronavirus pummelled global stock markets.
The Dow Jones and the S&P 500 both fell 2.5 per cent, to 25,119.36 and 2,904.44 respectively. The Nasdaq fared marginally better, opening 1.9 per cent down at 8,402.67.
The falls meant that US markets are still on course for their worst week since October 2008 – the financial crisis – after yestrday saw the Dow Jones suffer the biggest fall in its history as the Wall Street index sank 1,191 points.
The S&P 500 and Nasdaq indices also suffered losses of more than four per cent. Global stocks had lost £2.9 trillion for the week as of yesterday’s close, according to AJ Bell.
Apple is the biggest faller on the Dow so far today, down 5.3 per cent, with countless other big names also struggling.
McDonalds, Walmart, JPMorgan Chase and Coca-Cola are all down over three per cent as stocks are showing wall to wall red.
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Mihir Kapadia of Sun Global Investments says: “One factor influencing investors is that in a hyper-connected world it appears no country is safe from the coronavirus, with major economies all being impacted and looking likely to spread even further.
“As a result, this is only generating more uncertainty and the lack of conviction from governments and policymakers is only making the situation more concerning. This is causing them to turn to safe havens, with gold in particular enjoying an increased inflow of investors to touch new-record prices.”
The fall came as FTSE 100 has suffered its worst week since the 2008 financial crisis, meaning it is now in so-called correction territory.
London’s blue-chip index had fallen a collective 11.1 per cent since Monday, AJ Bell said, in a dire week for listed companies who have issued warnings on the coronavirus outbreak.
Only the post-Lehman Brothers meltdown in autumn 2008 and the 1987 crash have seen the FTSE 100 stagger to greater falls.
The index suffered a drop of as much as four per cent today. It stood at 6,593 points in the early afternoon, a fall of three per cent.
France’s Cac had fallen a similar 2.74 per cent by afternoon. And Germany’s Dax experienced a 3.2 per cent plunge today.