S&P 500 drops to its lowest since 2018 over coronavirus fears

131546

The S&P 500 dropped to its lowest in two years on Monday when a sudden rise in coronavirus cases outside China caused investors to worry about valuation after the recent highs.

The S&P 500’s 3.5% drop was its heaviest fall in a day since February 2018, during Wall Street’s correction.

Market fears came after investors underestimated the risks the virus posed in recent months. The drop of the S&P 500 on Monday eliminated all the U.S. stock index’s gains for 2020.

Most S&P 500 sector indexes remain close to their record highs, excluding energy .SPNY. The S&P information technology index .SPLRCT fell 4.2% on Monday, struck by losses for chipmakers and Apple. The said index fell 7% from its record high on Feb 19. However, it still stands at nearly 4% in 2020.

The Philadelphia Semiconductor Index .SOX fell from its record high the previous week.

Market worries on the virus’ potential to turn into a pandemic caused a spike in the listings on the NYSE (New York Stock Exchange) as it hit 52-week lows. It fell to new lows in one session since August. Consecutively, the number of stocks that hit 52-week highs dropped to 278 from 400 on Friday.

The information and recommendations contained in this analytical document are published strictly for information purposes and are not considered as an offer to buy or sell the trading tools mentioned above and are not intended to motivate to perform certain transactions
Something went wrong
Message: