NEW YORK • US stocks tumbled again yesterday, joining a sell-off in most global bourses over coronavirus fears, putting Wall Street on pace for its worst week since 2008.

The Dow Jones Industrial Average stood at 26,269.96, down nearly 700 points or 2.6 per cent around 1555GMT (Singapore time 11.55pm yesterday). The blue-chip index has fallen the last five days.

The broad-based S&P 500 slid 2.5 per cent to 3,038.80, while the tech-rich Nasdaq Composite Index shed 2.9 per cent to 8,719.48.

The losses came after US public health officials confirmed a coronavirus case in California, the first one of unknown origin domestically.

The MSCI All Country World Index fell to the lowest since last October, while the Stoxx Europe 600 also entered a correction. Goldman Sachs strategists wrote that they expect no profit growth for US companies this year as they update their earnings model to incorporate the likelihood that the virus becomes widespread.

“Stocks and bonds say we’re doomed,” said Mr Chris Rupkey, chief financial economist at MUFG Union Bank. “Anyone who has a better idea for what lies ahead, please let us know because right now the direction ahead for the economy is straight down.”

Haven assets continued to be in demand, and the yen strengthened as yields on 10-year US and Australian government bonds hit fresh record lows. Oil sank further. The pound reversed a gain after Britain told the European Union it could walk away from the negotiating table in June if progress is not being made towards a trade deal.

Losses continue to mount as investors weigh each gloomy headline on the virus. The US health authorities said on Wednesday they found the first case of the illness that does not have ties to a known outbreak. Microsoft Corp joined an expanding list of companies warning over the impact of the virus on operations.

“The way the market is going down, it’s happening pretty quickly, but it’s very difficult to say that it’s over,” said Mr Sameer Samana, senior global market strategist at Wells Fargo Investment Institute. “Bottoming is a multi-step process and you’re probably still in step one.”

BLOOMBERG

How the virus spread

By Jan 22 New cases had surfaced in China, Macau, Taiwan, Japan, South Korea, Thailand and the United States

By Jan 26 New cases in Hong Kong, Singapore, Malaysia, Vietnam, Nepal, Australia, Canada and France

By Jan 30 New cases in Cambodia, the Philippines, India, Sri Lanka and the United Arab Emirates

By Jan 31 New cases in Britain, Spain, Italy, Germany, Sweden and Russia

By Feb 21 New cases in Belgium, Egypt, Iran, Israel and Lebanon

By Feb 25 New cases in Switzerland, Austria, Algeria, Croatia, Bahrain, Kuwait, Iraq, Oman and Afghanistan

By Feb 27 New cases in Denmark, Finland, Norway, Brazil, Greece, Georgia, Estonia, Romania, North Macedonia and Pakistan

ADAPTED FROM THE GUARDIAN

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