Wall Street is on track for its biggest weekly loss since the 2008 financial crisis as investor worries escalate over the deadly coronavirus outbreak.
Ahead of market open, Dow futures were down more than 400 points — after closing Thursday trading nearly 1,200 points in the red. S&P futures dipped 52 points and Nasdaq futures declined 162 points.
Major benchmark indexes have tumbled into correction territory, marked by a decline of at least 10% but no more than 20%. The Dow Jones Industrial Average has dropped more than 3,000 points this week alone, while the S&P 500 plunged 12% over the course of six days, wiping out $3.4 trillion in market value.
According to the World Health Organization, the coronavirus — which has killed 2,800 and infected upwards of 83,000 people — has spread to nearly 50 countries. Global stocks also fell sharply, with the FTSE 100 Index losing nearly 250 points, Japan’s Nikkei 225 plunging 805 points and South Korea’s Kospi in the red 67 points. Elsewhere in the world, Mexico’s health secretary today confirmed the country’s first two cases of the coronavirus.
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Concerns over the illness have led several companies to issue revenue and profit warnings for the year. With China responsible for producing the bulk of apparel, footwear and accessories sold around the world, many retailers and brands have braced for disruption to their global supply chains. A number of firms that do business in China — including luxury names Burberry as well as Versace parent Capri Holdings and Gucci owner Kering — have also opted to shutter their stores in heavily affected regions or cut back on their operating hours, leading to lower sales that are likely to dent their overall fiscal-year bottom lines.
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