Global markets dove this week as concern over the potential effect of the coronavirus increases with investors. The Dow Jones Industrial Average lost 14%, the S&P lost 13% after falling from a record high just days ago, and U.S. Treasury bond yields dropped to new record lows as traders abandoned risky assets for more prudent ones.
Investors also struggled with mixed messages: President Trump downplays the crisis, while the CDC warned the American people to brace for major disruptions, sharing that the spread of the disease in the United States is “not so much a question of if this will happen anymore, but rather more of a question of exactly when this will happen.”
The Federal Reserve Chair Jerome Powell furthered pledging to “use our tools and act as appropriate” to help reduce the effects of the crisis.
More than 80,000 people have been infected with the coronavirus so far, and businesses across the globe are feeling the squeeze even as the Chinese return to work.
Investors enter an uneasy weekend, reviewing some big numbers that defined the market’s worst week since the depths of the financial crisis.