Oil Markets and Coronavirus Fears Lead to Stock Market Nosedive

Oil Markets and Coronavirus Fears Lead to Stock Market Nosedive

(UnitedVoice.com) – The novel coronavirus (COVID-19) has not only infected over 113,000 human beings as of March 9, but it’s also wreaking havoc on financial markets. The Dow Jones Industrial Average (DJIA) suffered it’s worse one-day points decline in its history.

One of the triggers for the plummet of the markets, the S&P 500 and the NASDAQ Composite both suffered downturns in excess of 7%, is the unchecked spread of the bug that originated in Wuhan, China. The jitters have obliterated roughly $5 trillion from the aggregate value of the stocks traded on the S&P 500 in just a few weeks.

Investors seem to fear that large swaths of the global workforce could be sidelined due to quarantines and the like. Italy, for example, has extended its “red zone” rules essentially putting the entire country on lockdown. There are experts out there who are advising against panic.

Another major concern is the price war in the crude oil market developing between Saudi Arabia and Russia. Both of these heavy hitters have announced intentions to increase their production levels stoking worries of a glut in the supply. This has sparked a decrease of about 25% in the value of crude futures.

Until some agency like the Centers for Disease Control and Prevention (CDC) or a pharmaceutical company manages to get a vaccine developed and to market, there’s just no telling how far it will spread. Until then, situations like the one in Italy which limit contact and therefore the transmission of the virus, and other precautionary measures are the best bet to contain the virus.

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