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Wall St slump deepens on U.S. coronavirus warning

Credit: Reuters Studio
Published on February 25, 2020 - Duration: 02:33s

Wall St slump deepens on U.S. coronavirus warning

Stocks tumbled for a fourth straight session and bond yields set historic lows after the CDC warned the coronavirus is likely to break-out in the U.S. Conway G.

Gittens has the full market reaction.

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Wall St slump deepens on U.S. coronavirus warning

Wall Street took another shellacking Tuesday, down for the fourth session in a row, after the U.S. CDC warned Americans coronavirus is likely headed their way.

The outbreak is no longer contained to China but has spread to other parts of Asia, the Middle East and Europe… And now the CDC says it's not a matter of if, but when the outbreak hits the U.S. The Dow tumbled 879 points.

The S&P 500 lost 97 points.

The Nasdaq fell 255 points.

Much of that money flowing out of stocks went to the perceived safety of the bond market.

Worried investors pushed the yield on the 10-year note to its lowest -ever.

Max Wolff is a strategist with Multivariate SOUNDBITE (ENGLISH) MULTIVARIATE STRATEGIST MAX WOLFF, SAYING: "You really do want to watch.

If you have three days bad and you don't see a bounce going into the weekend then I sort of think this could be a little bit more than short term.

So this could be a little bit bad because if people start getting spooked they look at start taking gains and until February there were a lot of things to take off that table." Travel stocks were under pressure with more countries put on the no destination list.

American Airlines, Delta, and United are restricting flights to Italy... And the CDC has ordered Americans to avoid all non-essential travel to South Korea.

MasterCard also sounded an alarm.

The credit card processor warned that if the virus outbreak extends - damaging travel and online shopping across borders - its quarterly sales will suffer.

Shares of MasterCard tumbled nearly 7 percent.

It was tough day for Shake Shack investors but not because of the coronavirus.

The hamburger chain posted disappointing quarterly results and issued a weak outlook.

Without new items on its menu it isn't seeing a pick-up in foot traffic and a decision to switch solely to GrubHub for delivery has hurt business as well.

Shares of Shake Shack slumped 14 percent.

After the bell, a surprise from Walt Disney.

Long-running and very successful CEO Bob Iger is stepping down as CEO effective immediately.

Iger is responsible for the blockbuster Disney purchases of Pixar, Marvel Studios and 21 Century Fox and the roll-out of streaming service Disney+.

His successor is Bob Chapek, the head of Disney's park's division.

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