single-day drop since October 2, 2019, the S&P’s since October 8, 2019, and the Nasdaq’s since August 23, 2019, according to Dow Jones Market Data. Crude oil prices also hit a three-month low on Monday, with U.S. West Texas Intermediate falling to $53 per barrel.“Hopes that the virus would be contained were squashed over the weekend,” says Ryan Detrick, senior market strategist for LPL Financial.
“The Chinese economy—and possibly the world economy—will take a hit in the short run, and lower prices are a rational response to the increasing spread of the coronavirus,” predicts Chris Zaccarelli, chief investment officer for the Independent Advisor Alliance. “However, over the medium term, this will likely prove to be a buying opportunity.
that China’s annual projected growth rate of 5.9% would be dragged down by 0.5% to 1% in total, while S&P Global warns that the virus could slice off as much as 1.2%.