The New York Stock Exchange made a last-minute rebound on news of the WHO statement over the coronavirus outbreak.
The WHO has declared a Public Health Emergency of International Concern (PHEIC) for the new strain of coronavirus infection. However, it did not recommend any restrictions on travel to China. And assessed that China is in good control of the situation.
Impact of WHO statement to New York State Exchange
The Dow Jones index closed at 28,859.44, up 124.99 points, or 0.43 percent, from the previous day. After extending its losing streak to 244 points and making up for it at the last minute.
The S&P500 closed at 3,283.66, up 10.26 points, or 0.31 percent, from the previous day. While the Nasdaq closed at 9,298.93, 23.77 points, or 0.26 percent, forward from the previous day.
On the same day, China’s National Hygiene Health Commission said the death toll from Corona tallied at 171 by the day. With more than 8,000 confirmed cases.
The number of cases of infection also increased outside China, with the U.S. Centers for Disease Control and Prevention saying human-to-human infections have been confirmed for the first time in the U.S.. Which pushed the key index to the low point of the day.
Tom Essaye, founder of The Sevens Report, said that while the spread of the new corona virus is not accelerating,. The market is more concerned about the impact the current situation will have on future corporate earnings or economic growth. As companies stop working or take steps to stem the spread of the virus.
The outbreak of the new coronavirus has put pressure on the stock market throughout this week.
The S&P500 and Dow fell more than 1 percent during the period, while the Nasdaq lost 0.9 percent. If this continues, the Dow and S&P500 will mark the first consecutive week of weekly falls. Since a three-week losing streak in early October.
Wall Street took note of Facebook, which in its earlier earnings released, raised concerns about a cut in profits from soaring costs. Facebook shares lost more than 6 percent on the day on the worrisome earnings announcement.
On the other hand, Tesla’s stock price soared more than 10 percent after two consecutive quarterly earnings surprises. In addition, Microsoft, which unveiled earnings that exceeded market expectations before the market opened, rose to 3 percent at its regular market.
Meanwhile, the released U.S. economic indicators were not enough to create investor relief.
According to the U.S. Commerce Department, the U.S. gross domestic product grew 2.1 percent in the fourth quarter. The same growth as expected in the third quarter, but the annual growth rate was 2.3 percent. It is the lowest since President Donald Trump took office.
