Submitted by Market Crumbs,
Well, CNBC's Markets in Turmoil failed to spark its typical boost to equities as stocks continued their selloff yesterday as fears over coronavirus continue to rattle investors' confidence.
The Dow Jones Industrial Average has now lost 6.59% over the last two days, its worst two-day loss since February 2018. The S&P 500 has lost 6.28% over the last two days, wiping out $1.737 trillion in market value, marking the worst two-day stretch since August 2015. Lastly, the Nasdaq has lost 6.38% over the last two days, marking the worst two-day stretch since June 2016.
One of the more obscure stats to take note of is the S&P 500 closed down more than 2.5% for consecutive sessions while above its 200-day moving average for the first time since 1938.
More than 64% of S&P 500 companies have entered a correction, meaning they're down at least 10% from their 52-week highs, while 25% of S&P 500 companies have entered a bear market, meaning they're down at least 20% from their 52-week highs.
Interestingly, U.S. President Donald Trump—who doesn't watch the stock market, is reportedly "furious" the markets have been selling off. The Washington Post reported he has warned aides against discussing the impact of coronavirus over fears that stocks may continue to fall.
Officials at the Center for Disease control appear to have concluded it's only a matter of when, not if, coronavirus spreads throughout the U.S.
"It's not so much a question of if this will happen anymore but rather more a question of exactly when this will happen and how many people in this country will have severe illness," Dr. Nancy Messonnier, the head of the National Center for Immunization and Respiratory Diseases at the Centers for Disease Control and Prevention, said.
Meanwhile Gilead Sciences has begun a clinical trial of its drug remdesivir on a patient hospitalized with COVID-19, marking the first clinical trial in the U.S. to find a treatment for coronavirus. The participant is an American who was quarantined on the Diamond Princess cruise ship in Japan and volunteered to participate in the study.
"We urgently need a safe and effective treatment for COVID-19. Although remdesivir has been administered to some patients with COVID-19, we do not have solid data to indicate it can improve clinical outcomes," said NIAID Director and U.S. Coronavirus Task Force member Anthony S. Fauci, M.D.
It's anyone's guess where markets go from here. Unlike other issues that have popped up during this bull market, a deadly virus sweeping the globe is not something that central bankers can easily overcome by printing money or cutting interest rates.