Jeff Fawkes is a seasoned investment professional and a crypto analyst covering the blockchain space. He has a dual degree in Business Administration and Creative Writing and is passionate when it comes to how technology impacts our society.
Dow is set to drop nearly 600 points as coronavirus fears spread across Wall Street and the California state. Wuhan’s report claims a 36-year man died at home after he was cured of coronavirus at the hospital. Wuhan still has trouble with virus elimination.
According to the recent report, the Chinese government is not able to hold the coronavirus in the center of Wuhan. A new spike of contaminations shows that the infection continues spreading across the city. In mainland China, the daily number of new coronavirus cases is rising from 115 at the beginning of the week to 139 now. And coronavirus fears obviously have an impact on traditional market indices including Dow which is set to drop even more.
What is scary about the new data, is that even people who supposed to receive a treatment concerning coronavirus are still dying. Per the SCMP, a 36-years man have died at his home after he successfully left the hospital. On Wednesday, the Wuhan party chief claimed:
“The situation facing epidemic control in Wuhan is still complicated. We will not be able to contain the spread if we do not impose unified strict measures”
The report may mean that the hospital equipment and the coronavirus tests do not always show the correct treatment results. In the future, it is more likely that more people in China will die at home after leaving the hospital with no signs of COVID-19.
Dow Lost 600 Points with Another Drop to Come amid Coronavirus Panic
Despite the Dow index has recently received a boost, the signs of it quickly vanished as the market lost 500 points solely on the opening. It keeps losing now, with presumably 700 points loss. Another Dow drop due to coronavirus may happen at the day end. The S&P 500, as well as NASDAQ-100 futures, have been falling during the day.
The more the countries are clothing the supply chains and communications, the more Wall Street loses. Investors are rushing to pledge their money into the stocks of pharmaceutical companies. Those posses rich labs to create dangerous chemical substances (often named ‘drugs’). No matter what the real virus origin (a Chinese lab or a market bat) is, the U.S.-based labs packed with medical equipment (and possibly the strains of other deadly viruses) are the perfect place to research into coronavirus treat.
Futures, Treasuries, and gold didn’t show much of a reaction regarding viruses, and the cryptocurrency market has a slight increase. It looks like the cryptocurrency sphere is not preparing for a bull run. Matt Maley, an analyst at Miller Tabak, claimed:
“Despite the rally in stocks, Treasury yields and gold prices did not respond in-kind. None of the other markets saw the kinds of moves yesterday that would indicate that we’re out of the woods on the negative impact of the coronavirus. In other words, many other markets are still sending up warning signals.”
California Declares the State of Emergency
After California sent first death reports, there are already 11 people died and 53 contaminated in the state. Gavin Newsom, the local governor, said last night that the state is going into the emergency mode. The press says that people are fearing the ship that is waiting in waters near the state coasts now. Per Newsom, Grand Princess is held in the waters until all the people on board pass the test.
Notably, the FED also makes a 50 base point cut in the benchmark interest rate, first time after the crisis in 2008, because of coronavirus and supply chain disruption.