The US markets ended deeply in red on Monday, extending the notable pullback seen over previous session, as the spread of the COVID-19 illness beyond China raised worries that the hit to overseas economic growth could be more persistent than investors expected, hampering the prospects for a global recovery in 2020. South Korea announced a total of 231 new coronavirus cases, leading the government to raise the coronavirus alert to its highest level. A jump in confirmed coronavirus cases in Italy as well as new cases in Middle East countries like Iraq and Afghanistan also added concerns about the outbreak escalating into a pandemic. Meanwhile, the World Health Organization said it is worried about the growing number of cases without any clear link to China.
In the US, there are now 53 confirmed cases of COVID-19, as more passengers who returned from the Diamond Princess cruise ship tested positive for the virus, according to an update from the Centers for Disease Control and Prevention. Besides, the International Monetary Fund warned the virus outbreak could reduce global economic growth by 0.1% this year, and drag China’s annual growth 0.4 percentage points lower than January estimates.
Dow Jones Industrial Average dropped 1,031.61 or 3.56 percent points 27,960.8, Nasdaq fell 355.31 points or 3.71 percent to 9,221.28 and S&P 500 was down by 111.86 points or 3.35 percent to 3,225.89.
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