The S&P 500 wiped out about $1.737 trillion of its value during its two-day market sell-off, according to S&P Dow Jones Indices.
CNBC reports: “The equity benchmark lost $810 billion in value on Tuesday, adding to its $927 billion loss on Monday, according to the firm’s Senior Index Analyst Howard Silverblatt. It’s down $2.138 trillion since last Wednesday’s high, according to S&P Dow Jones.
“Stocks cratered again on Tuesday as investors fled riskier assets amid intense fears about a slowdown in global growth caused by the deadly coronavirus.
The S&P 500′s two-day loss of 6.3% was the largest for the benchmark since August 2015, when the Chinese government devalued the yuan amid the U.S.-China trade war.
Tuesday’s 900 point drop in the Dow Jones Industrial Average added to Monday’s stunning 1,000 point plunge. The Nasdaq Composite fell 2.8% on Tuesday and joined the S&P 500 and Dow in turning negative for the year. Bond yields also plunged as investor sought safer havens. The yield on the benchmark 10-year Treasury note fell to a record low of 1.32%.
The spreading deadly virus, that has infected more than 80,000 and killed more than 2,700, has sent shock waves through the markets. Companies like Apple, Nike, United Airlines and Mastercard have all raised flags about the coronavirus and its impact on their earnings. Chip stocks, which rely heavily on revenues from China, are being abandoned by Wall Street as it becomes more apparent supply chain disruption will persist until the epidemic is contained.
Top White House economic advisor Larry Kudlow told CNBC that the US economy is “holding up nicely” and that the coronavirus in this country is “pretty close to air-tight’ containment.
Meanwhile, US President Donald Trump has returned from India “to see his administration on the defensive over his administration’s handling of the novel coronavirus.
Trump has scheduled a 6pm ET news conference, following a briefing with top aides.
“But while the President and senior administration officials have publicly downplayed the impact of the virus, the White House is also considering additional travel restrictions to address the crisis,” the report said.
“The stock market decline has especially exacerbated Trump’s rising concerns over how to stem the outbreak of the coronavirus even though he has publicly declared the virus to be ‘very much under control in the USA’.
“Investors are growing concerned about the economic impact of the coronavirus, as is the President, whose reelection campaign is banking on a strong economy.
“Trump has been publicly downplaying the novel coronavirus’ effects, because he thinks doing otherwise could cause further panic in the markets — and he’s been frustrated with officials issuing warnings about the unknowns of the virus’s spread.
“As CNN previously reported, Trump has been privately lashing out at officials for coronavirus-related decisions.
“His instinct has been to seal off the US from those testing positive, even Americans, though he acknowledged at a press conference in India that allowing them back into the US was the right thing to do.