Stocks are falling again on Thursday as the economic impact of the global coronavirus spread becomes clearer.
The Dow fell more than 600 points, or 2.5%, to 26,414 shortly after markets opened on Thursday. The S&P 500 declined 2.4% and the tech-heavy Nasdaq dropped 2%, erasing half of their gains from Wednesday's rally.
The Institute of International Finance predicted that U.S. economic growth would slow to 1.3% this year and that global expansion could hit its lowest level since the 2008 financial crisis.
A United Nations report released on Wednesday found that the impact of the novel coronavirus spread could cost the global economy as much as $50 billion.
Capital Economics, which advises institutional investors, estimates that a modest coronavirus outbreak lasting roughly three months would lower U.S. growth by a modest 0.2% this year.
"Our current working assumption is still that the number of coronavirus cases in the U.S. is restricted to the low tens of thousands which, in a country of more than 325 million, would represent an infection rate of less than 0.1%," the firm said in a report. "Furthermore, we suspect that the number of cases will drop off again once summer arrives, meaning that the economic disruption would last for little more than one quarter."
A severe pandemic lasting upwards of 12 months would slam growth, pushing the country's annual gross domestic product by 3%, according to the firm.
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March 05, 2020 at 09:52PM
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Stocks renew slide on concerns of severe coronavirus hit - CBS News
"severe" - Google News
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