There are now more than 114,000 outbreaks of coronavirus worldwide, with total deaths exceeding 4,000.
The mixture of measures to curb coronavirus, together with an oil price war that will reach exporting nations, raises concerns about a much more severe economic impact, with fears rising from a global recession.
COVID-19 threat over markets like Dow Jones
Uncertainty over the magnitude and length of coronavirus epidemic, tearing and spreading all over the globe, affecting almost every industry, especially stock markets.
Financial stocks have dropped dramatically, while investors remain worried about the overall economic effects of coronavirus.
The Index Average of Dow Jones finished at 25,018.16, 1,167.14 points higher, or 4.9 percent. (1) Gains for the Dow throughout Tuesday cut the index’s losses in half from Monday.
USA Prez proposed a new stimulus
Dow Jones futures pared losses as Donald Trump said Tuesday he would negotiate with Congress a payroll tax cut to help mitigate the economic impact of coronavirus.
The payroll tax cut would also be part of a recovery package that includes specialized loans to small firms and paying hourly workers for leave.
Dow Jones Situation
Coronavirus stock market correction is almost a bear market since the Dow Jones, S&P 500, and Nasdaq combined experienced their worst one-day decline since 2008 amid Covid-19 worries and falling crude oil prices.
The industrial average of Dow Jones, for instance, had both its most notable single-day point drop (1,191 on Feb. 27) and it’s most significant gain (1,294 on Monday).
Bull in Dow Jones
Late last week, a rally effort on the stock market showed promise, followed by substantial gains for Wednesday’s main indexes. However, heavy trading yielded.
The industrial average of Dow Jones rose by 1.8 percent over the week, the S&P 500 index by 0.6 percent, and the Nasdaq composite by 0.1 percent thanks to a late Friday rally from intraday lows.
Earlier this week, to alleviate investor interest, the Federal Reserve, the central bank of the US, dropped its benchmark interest rate by 0.5 percentage points to a maximum of 1 to 1.25 percent.
Look Out for Bear
Today’s Dow Jones is fallen 19 percent from its all-time high, just short of the bear market point of 20 percent. Altogether S&P and Nasdaq are 19% down as well.
The coronavirus stock exchange correction could be over promptly, or last months.