U.S. stocks tumbled to an almost 12-week low and bond yields plunged to records on rising concern the coronavirus will upend global supply chains critical to economic growth.
The S&P 500’s four-day rout reached almost 7.6 per cent, with losses accelerating Tuesday after the U.S. Centers for Disease Control and Prevention warned Americans to prepare for a coronavirus outbreak at home. That follows a rapid increase in cases from Italy to Iran and Japan, with a growing list of companies warning that profits will suffer as economies around the world suffer. The S&P, Dow Jones Industrial Average and Nasdaq Composite indexes all set record highs this month.
Wall Street’s three major stock indexes fell 3 per cent as the coronavirus spread further around the world and officials described it as “a rapidly escalating epidemic,” a day after the S&P 500 and the Dow Industrials’ biggest daily decline in two years.