Wall Street Endures Worst Week Since 2008 Financial Crisis Amid Coronavirus Fears
U.S. stocks plummet as the coronavirus outbreak wipes over $3 trillion from market values, sparking the worst weekly losses since the 2008 financial crisis. Federal Reserve Chairman Jerome Powell promises potential intervention to protect the economy.
Wall Street experiences its worst week since the 2008 financial crisis as mounting coronavirus fears trigger massive market sell-offs. The Dow drops 357 points to close at 25,409.36, capping off a devastating week that sees the index lose over 12% of its value. The S&P 500 falls 0.8% on Friday and sheds 11% since the previous week, erasing more than $3 trillion in U.S. equity value from recent market highs.
Federal Reserve Chairman Jerome Powell issues a statement to calm panicked investors after the Dow sheds over 1,000 points earlier in the day. Powell acknowledges that the coronavirus poses evolving risks to economic activity but emphasizes that the fundamentals of the U.S. economy remain strong. He signals that the central bank stands ready to use its tools, including potential interest rate cuts, to support the economy if the outbreak causes significant damage.
The global spread of the virus continues to drive market anxiety as over 83,000 cases emerge across 53 countries with a death toll exceeding 2,800. Major tech companies like Apple and Microsoft warn that the outbreak negatively impacts their financial projections. Meanwhile, governments take drastic containment measures, such as Japan's decision to close all public schools, further fueling investor concerns about widespread economic disruptions.