Traders this week continued to fret about the coronavirus and its effects on the global economy. While the virus seems to have stopped spreading in China, the rest of the world continues to rack up new cases. This prompted a variety of new\measures including school shutdowns, quarantines and travel restrictions across the globe, including into the United States. Several states have continued to close and shutdown various districts and operations in an attempt to keep the outbreak under control.
However, with such measures in place, many analysts have started to worry about the effects on the U.S., especially where the consumer is concerned. With more people telecommunicating, schools closed and other measures in place, demand for a variety of services and goods have been dropping. This includes crude oil, which hit lows not seen since the 1990s.
At the same time, the U.S. government response has been muted to the viral outbreak. With several speeches by the Trump administration, officials failing to shed any light on the issues facing the nation caused stocks to fall hard on the week.
In the end, heavy losses and increased volatility were the norm this week. The sell-off in stocks continues.
Be sure to check out our previous Wrap here, when traders got whiplash from the volatility.
