The U.S. Stock market has authoritatively dove into amendment domain—at the quickest rate at any point recorded, enduring its most exceedingly terrible misfortunes since the 2008 monetary emergency this week in the midst of continuous frenzy over the spreading corona-virus and its effect on the worldwide economy.
Hundreds of companies, from Apple and Nike to Starbucks and Microsoft, have issued warnings that the corona-virus will impact financial results for the first quarter and beyond. In a note on Wednesday, investment banking giant Goldman Sachs threw its estimate for U.S. corporate earnings in 2020, forecasting 0% earnings growth for 2020 as a result of the outbreak.
Among the stocks that have been hard hit this week are Apple (which is now flirting with bear market territory after falling 20% off its record highs) and American Airlines, which fell more than 25% this week.
Some experts are skeptical any action from the central bank can stem market fallout from the coronavirus; Mohamed El-Erian, chief economic advisor for Allianz, Via CNBC on Thursday that “markets will start freezing up even if the Fed cuts rates, which I think they will.”
The Dow plummeted nearly 1,200 points on Thursday—its biggest one-day drop ever, thanks to the coronavirus, which has now spread to at least 49 countries in a matter of weeks. Those losses continued on Friday, though the drop was somewhat less severe: The Dow fell 1.4%, while the S&P 500 sank 0.8%.