Stocks fell broadly on Friday, wiping out the Dow Jones Industrial Average[1]'s gain for January, as investors grew increasingly worried about the potential economic impact of China's fast-spreading coronavirus[2].
The Dow dropped 350 points, or 1.2%, falling to its low of the session after Delta and American suspended all flights between China and the U.S. The S&P 500[3] was down 1% while the Nasdaq Composite[4] dipped 0.9%.
The major averages slid even as Amazon surged 9% to a $1 trillion market value, joining an elite club shared only by Apple, Microsoft and Alphabet.
China's National Health Commission confirmed on Friday that there have been 9,692 confirmed cases of the coronavirus, with 213 deaths.
The World Health Organization (WHO) recognized[5] the deadly pneumonia-like virus as a global health emergency on Thursday, citing concern that the outbreak continues to spread to other countries with weaker health systems. WHO's designation was made to help the United Nations health agency mobilize financial and political support to contain the outbreak.
The virus, which was first discovered in the Chinese city of Wuhan, has now spread to at least 18 other countries[6] and has dampened sentiment over global economic growth.
"The outbreak of the coronavirus has added another headwind to the near-term outlook for stocks," said Peter Berezin, chief global strategist at BCA Research, said in a note. "Viruses often become less lethal as they mutate because a virus that kills its host is also a virus that kills itself. Unfortunately, in a world of mass travel, a virus can spread across the globe before it has time to lose potency."
Police officers in plainclothes raid a medical...