There is now no doubt that coronavirus is seriously beginning to affect the market. It appears to be affecting markets all across the board, which has dropped considerably. The only thing doing well today is gold. Gold prices today have reached the highest levels since 2013.
Coronavirus continues to spread and the news coming out of China is not good. Since it is one of the largest markets, what happens there is going to affect the global GDP. The travel industry has already taken a strong hit and it will get worse if the virus continues to spread to new countries. More negative news out of China will likely cause a much further drop in stocks.
Many people doubt the numbers that are being reported from China. Already they do not make a lot of sense and it is believed that the numbers are grossly underestimated. This is based on the fact that there are lines at the hospitals and many people have not yet been diagnosed or treated.
Since the mayor of Wuhan reported that about five million people left the city before the quarantine could be initiated, it means that it could have spread much further than imagined. The incubation period has also been reported to be up to 14 days. This means that many people could have it that do not even know it yet and they could be spreading it everywhere they go. This fact makes it much harder to control.
Stocks Could Go Lower
At this moment, stocks on the NYSE Composite Index have closed at 208.89 points lower than yesterday. That is a loss of 1.49% from yesterday’s close. The Dow Jones took an even larger hit with a drop of 453.93, or 1.57%. The S & P 500 was down to 51.84 – also 1.57%.
Even though there is some selling going on, it is quite likely that there will be much more. Buying now may be a little hasty since you could probably get much better deals if things get worse.
The NYSE Bitcoin Index showed a gain of more than 276.24 points. This is an increase of 3.26%.
The death toll is currently at 81 people. There are 2,886 people who are confirmed to have coronavirus, but experts outside of China believe the number is much higher, since many people at the hospitals have not yet been tested. It has spread to 15 additional countries, but the numbers in other countries are still in the single digits.
Stock market earnings levels on various stocks can be expected to drop even more – possibly much more. This will likely trigger a selling spree.
One type of stock that is showing promise is those companies that are seeking to develop a vaccine for coronavirus. Three companies you want to watch are Inovio Pharmaceuticals (INO) – up 25.5%; Novavax (NVAX) – up 9%; and Moderna (MRNA) – up 7.7%.
For those who want the best prices when buying, you will likely need to wait until earnings are even smaller. The value can be expected to keep going down as long as the coronavirus continues to spread and negative news keeps pouring in from China and other nations.