Stocks – Dow Falls 450 as Virus Fears Spur Sharp Selling

By Yasin Ebrahim

Investing.com – Wall Street closed sharply in the red Monday as virus fears gripped investors amid worries that an accelerated outbreak will hit China’s economy and slow global growth.

The lost 1.58%, while the fell 1.89% and the slumped 1.58%, more than 450 points.

A sea of red washed over the broader market, paced by steep declines in energy and travel stocks on worries of slowing tourism amid signs that the spread of the virus is gathering pace.

American Airlines (NASDAQ:) and United Airlines (NASDAQ:) fell more than 5%, while Royal Caribbean Cruises (NYSE:) fell more than 7%.

Health authorities in the U.S., however, have downplayed the risk of contagion, with the Centers for Disease Control & Prevention on Monday claiming that “the immediate health risk from (the coronavirus) in the U.S. is currently considered low.”

With as many as 48 cities in China reported to be in lockdown, concerns over lower jet fuel demand continued to drive oil prices lower, keeping energy stocks in the red.

The selloff in casino stocks with exposure to Macau, China’s gambling capital, continued, with Wynn Resorts (NASDAQ:) and Las Vegas Sands (NYSE:) down 8% and 7% respectively.

The number of mainland Chinese visitors to the gambling-rich region of Macau fell 80% on Sunday, from a year ago, according to Bloomberg.

Chip stocks, meanwhile, racked up losses, triggering a broader decline in tech stocks ahead of key earnings from stalwarts like Microsoft (NASDAQ:) and Facebook (NASDAQ:) expected later this week.

Micron Technology (NASDAQ:), Intel (NASDAQ:) and Qualcomm (NASDAQ:) ended the day sharply lower.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.