U.S. consumer spending could see one-two punch from stocks drop, coronavirus

NEW YORK - The coronavirus outbreak has yet to spread meaningfully to U.S. shores, but fears of it alone have already eviscerated some $2 trillion of American stock market value, setting off a market rout that could stymie consumer spending - even before other economic effects of the disease are felt.

“The tightening of financial conditions I think is really the key game changer in this outbreak,” said Gregory Daco, chief U.S. economist for Oxford Economics. Through Tuesday, the S&P 500 had fallen 7.6% from its record high last Wednesday, wiping out more than $2.1 trillion of value in just four days, a historic loss in paper wealth.

Wealthy consumers, who have large stakes in the stock market and make up a substantial share of consumer spending, could also reduce their spending, said Danielle DiMartino Booth, founder of Quill Intelligence and a past adviser to former Dallas Fed President Richard Fisher. This could lead to reduced sales of luxury goods and lower spending on hotel stays, Booth said.

Colombia Últimas Noticias, Colombia Titulares

Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.

Donald Trump is furious about coronavirus-related stock market drops, blames CDC for spooking investors: reportThe president has informed his advisers not to make dire predictions about the financial impact of the virus, The Washington Post reported. Only a matter of time before he is spreading theories that China spread the virus deliberately to favour Democrats. Yep...he doesn't give a shit about no one past himself. LindseyGrahamSC I blame you for this monster.
Fuente: Newsweek - 🏆 468. / 52 Leer más »