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Stock Market: US stocks tumble over China epidemic worries.

February 5, 2020


US stocks ended January on a disappointing note after concerns around the deadly coronavirus intensified. The sharp decline seen last Friday dragged the Dow down to its lowest closing level in well over a month, while the Nasdaq and the S&P 500 also pulled back well off their recent record highs. The S&P 500 shed by 1.77% to close at 3,225.52 on Friday. For the week, it declined by 3%. The coronavirus has now killed more people in mainland China than the SARS outbreak in 2003, adding to worries about the economic impact of the rapid spread of the disease. Meanwhile, the Dow plummeted by 2.09%, to close at 28,256.03 on Friday, hitting its lowest closing level in well over a month. Airlines such as American, United and Delta announced they are curing travel between China and the US as fears around the sickness grew. The US government also declared the virus a national health emergency. In the meantime, the Nasdaq Composite dropped by 1.59% to 9,150.94. For the week, the tech-heavy index lost 2.68%. Among the worst performers, American Airlinesshares slid on Friday after the US flag air carrier suspended all US-China flights. The stock fell by 3.2% on Friday’s session
to end at $26.84. For the week, it posted a 6.8% fall. According to WSJ, American Airlines Group Inc. obtained an estimated Overweight proposal from the 21 brokerage firms currently keeping a deep eye on the stock performance. 3 equity research analysts rated the shares with a selling strategy, 7 gave a hold approach, 9 gave a purchase tip, 2 gave the firm an
overweight recommendation. Amazon, meanwhile, bucked the negative trend after its blowout earnings report for the fourth quarter of 2019. Amazon stock shot up more than 9% in early trading on Friday, propelling its market cap to hit $1.02 trillion at the open and causing the stock to hit a new all-time intra-day high of 2.054,99. The stock closed at 2.008,72 on Friday, posting a 6.59% rise on a weekly basis. According to marketplace observers, some stock traders may be reluctant to get back into the markets amid lingering concerns about
the coronavirus outbreak.

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