China virus wipes out $1.7 trillion in US stock market value in two days

NEW YORK: Stocks cratered again on Tuesday as investors fled riskier assets amid intense fears about a slowdown in global growth caused by the deadly coronavirus spread in many countries especially China, cnbc.com reported. The S&P 500′s two-day loss of 6.3% was the largest for the benchmark since August 2015, when the Chinese government devalued the yuan amid the U.S.-China trade war.

The S&P 500 just wiped out about $1.737 trillion of its value during its two-day market sell-off, according to S&P Dow Jones Indices.

READ MORE: How might the Coronavirus outbreak affect Pakistan’s economy?

The equity benchmark lost $810 billion in value on Tuesday, adding to its $927 billion loss on Monday, according to the firm’s Senior Index Analyst Howard Silverblatt. It’s down $2.138 trillion since last Wednesday’s high, according to S&P Dow Jones.

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Tuesday’s 900 point drop in the Dow Jones Industrial Average added to Monday’s stunning 1,000 point plunge. The Nasdaq Composite fell 2.8% on Tuesday and joined the S&P 500 and Dow in turning negative for the year. Bond yields also plunged as investor sought safer havens. The yield on the benchmark 10-year Treasury note fell to a record low of 1.32%.

 

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