Home / Financial Services/ Wall Street rally pauses amid China virus outbreak, growth fears

Wall Street rally pauses amid China virus outbreak, growth fears


Comments / {{hitsCtrl.values.hits}} Views / Wednesday, 22 January 2020 02:01


Reuters: US stock indexes slipped on Tuesday as worries about the fallout from a deadly virus outbreak in China and a gloomy growth outlook from the IMF paused a record-setting rally on Wall Street.

The developments soured the mood for US investors returning from a long holiday weekend. Strong data, the signing of the Phase 1 US-China trade deal and an upbeat start to fourth-quarter earnings season had sent the main indexes to fresh highs on Friday.

Chinese officials on Tuesday confirmed the new coronavirus outbreak took six lives and that it could spread between humans, stoking fears of a global pandemic and reviving memories of Severe Acute Respiratory Syndrome (SARS) — another coronavirus outbreak that killed nearly 800 people in 2002-03.

With the virus spreading just ahead of the Chinese New Year holidays, travel stocks including Delta Air Lines Inc., United Airlines Holdings Inc. and American Airlines Group Inc. fell between 1.5% and 2.6%.

Hotel and casino operators Las Vegas Sands Corp and Wynn Resorts Ltd, both of which have large operations in China, dropped about 5%.

Booking.com owner Booking Holdings and TripAdvisor both fell more than 2%.

“(The virus outbreak in China) seems to be the biggest negative,” said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.

“But it’s more of a global sentiment. We may see US markets try to spit it out because it doesn’t have that much of an impact on US economy.”

At 10:09 a.m. ET, the Dow Jones Industrial Average was down 0.15% at 29,302.69. The S&P 500 fell 0.23% to 3,322.12 and the Nasdaq Composite slipped 0.09% to 9,380.87.

Another cause for concern was the International Monetary Fund trimming its global growth forecasts for 2020 and 2021. IMF Managing Director Kristalina Georgieva said on Monday that while a slowdown in global growth appeared to have bottomed out, there was no rebound in sight.

Halliburton Co rose 2.2% after the oilfield service provider beat Wall Street estimates for quarterly adjusted earnings.

 


Share This Article

Facebook Twitter


DISCLAIMER:

1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.

COMMENTS

Today's Columnists

‘Stutiyi’, my dearest Sri Lankan friends

Monday, 24 February 2020

My heartstrings have been pulled every day during the past few weeks. When following closely my home-country’s all-out efforts to fight the COVID-19 epidemic, I’m always being touched by the most concrete solidarity and the most sincere friendshi


COVID-19 in China: Testing the quality of humanity

Monday, 24 February 2020

Many opinions have been penned across the world over the outbreak of the new strain of influenza. It has killed thousands of innocent Chinese according to official figures. As it came from China, no candlelight vigil has been held in major cities in


Extremes of two world economies – Communist and Capitalist

Monday, 24 February 2020

Up until now, two major economies have dominated the world – the communist economy, militarily controlled and with only state enterprises (or so it was believed outside of their military borders) and the so-called capitalist economy that commenced


Parliamentary debate on forensic audit reports: Only two constructive suggestions

Monday, 24 February 2020

A debate without substance I spent two afternoons last week in watching the live debate on the forensic audit reports by Sri Lanka’s Parliamentarians. Sadly, there were only two Parliamentarians who made constructive suggestions that should merit a


Columnists More