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.
United States United States Latest News, United States United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: Newsweek - 🏆 468. / 52 Read more »