US stocks weakened on Monday as investors worried over how the deadly coronavirus will affect the global economy.
Market indexes were headed to their worst losses in months as the Dow Jones Industrial Average and the S&P 500 both fell over 1.6%, while the Nasdaq Composite dropped by nearly 2%. All sectors in the S&P 500 were in the red, with energy recording the biggest decline at almost 3%. Utilities and consumer staples were little changed.
The coronavirus has reportedly infected about 2,862 people, with the death toll rising to 81 in China, mostly in the country's Hubei province, which sits at the heart of the outbreak. China has extended its Lunar New Year holiday by three days to Feb. 2 to stem the virus, which has been alleged to be contagious even during its incubation period. Meanwhile, the US Centers for Disease Control and Prevention confirmed on Sunday a fifth case of the virus in the US.
Wynn Resorts, Limited (WYNN), which has exposure to China through its operations in Macau, slumped 8% on concern tourism will be hit by the travel restrictions on several Chinese cities, including Wuhan, where the epidemic first surfaced.
Las Vegas Sands (LVS) and Royal Caribbean Cruises Ltd. (RCL) retreated by 7% and 8%, respectively. Airlines were also hit by the crisis, with United Continental (UAL) shares down by 5%.
"A prolonged spread of the virus could hurt global consumption," Eylem Senyuz, director, global macro strategist at SunTrust Advisory Services, said. "Impacted industries would include travel, leisure, and brick-and-mortar retail stores. On the other hand, health care and online retail could receive a short-term boost."
In commodities, West Texas Intermediate crude oil futures fell by 3% to $52.81 per barrel. Natural gas was up 0.3% to $1.90 per 1 million BTU. Gold was up 0.7% to $1,588.40 an ounce, and silver fractionally lower to $18.10 an ounce.
Among energy ETFs, the United States Oil Fund was down 3% to $11.10, while the United States Natural Gas Fund up 0.2% to $14.64. Among precious-metal funds, the Market Vectors Gold Miners ETF was down 0.5% to $29.08, while SPDR Gold Shares were up 0.7% to $148.99. The iShares Silver Trust was down 0.1% to $16.89.
NYSE Composite Index was down 208.87 points (-1.49%) to 13,769.60
Dow Jones Industrial Index was down 453.93 points (-1.57%) to 28,535.80
S&P 500 Index was down 51.84 points (-1.57%) at 3,243.63
Nasdaq Composite Index was down 175.60 points (-1.89%) to 9,139.31
FTSE 100 was down 173.93 points (-2.3%) to 7,412.05
DAX was down 371.91 points (-2.7%) to 13,204.77
CAC 40 was down 161.24 points (-2.7%) to 5,863.02
Nikkei 225 was down 483.67 points (-2%) to 23,343.51
Hang Seng was closed for holiday
Shanghai was closed for holiday
(+) CODX (+82%) Plans to use share sale proceeds for expansion of infectious diseases testing
(+) INO (+25%) Gets $9 million grant to develop coronavirus vaccine
(+) ACHN (+10%) US Federal Trade Commission grants early termination of an antitrust waiting period
(-) NURO (-26%) Sales slide in Q4
(-) CANF (-13%) Files registration statement covering potential sale of an indeterminate amount of securities
(-) HHT (-6%) Receives Nasdaq delisting letter regarding stockholders' equity deficiency