Global and U.S. markets dramatically fell Monday as fears over the deadly coronavirus continues to affect markets. "Investors are selling first and asking questions later," Chris Zaccarellis, chief investment officer for Independent Advisor Alliance, wrote in an email to clients. "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."
Here's how the stock market closed on Monday:
S&P 500 Index (NYSE: SPY): -1.58% or -52.20 points to 3,243.27
Dow Jones Industrial Average (NYSE: DIA): -1.58% or -459.09 points to 28,530.64
Nasdaq Composite Index (NASDAQ: QQQ): -1.89% or -175.60 points to 9,139.31
In Major Stock News, Inovio Pharmaceuticals (NASDAQ: INO) stock surged 23% after the biotech announced last week that is was granted $9 million the Coalition for Epidemic Preparedness Innovation to develop a vaccine against the coronavirus. Clorox (NYSE: CLX) shares increased more than 2% due to the consumer goods manufacturer specializing in disinfecting wipes. Chipmakers, including Micron Technology (NASDAQ: MU) and Nvidia (NASDAQ: NVDA), dropped over 4% over fears of the spreading virus impacting global trade. Energy stocks (NYSE: XLE), including Chevron (NYSE: CVX) and Exxon Mobil (NYSE: XOM), declined amid growing fears of a global economic slowdown.
In Stock Sector News, all 11 sectors took a dive on Monday as market participants massively sell off stocks. The performance declines are as follows: Energy -2.76%, Information Technology -2.36%, Materials -2.10%, Industrials -1.87%, Communication Services -1.69%, Financials -1.54%, Consumer Discretionary -1.52%, Health Care -0.74%, Real Estate -0.41%, Consumer Staples -0.32% an Utilities -0.30%.
Lastly, in Commodity and Currency News, oil prices are continuing their steep descent on Monday as investors fear that global trade will halt as the coronavirus spreads. West Texas Intermediate (NYSE: USO) fell -2.66% and Brent Crude dropped -2.74%. Gold (NYSE: GLD) continued its growth trend on Monday due to investors buying into this "haven" commodity. Gold prices increased +0.62%. Finally, the U.S. Dollar added more strength on Monday, with the DXY Index growing +0.11%.