Dow dives more than 500 points as coronavirus fears spark economic slowdown worries
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In the last day of January trading, the Dow erased all the gains it made for the month.
All major indices slid, with the Dow Jones Industrial Average diving 520 points, a 1.8 per cent decline, Friday.
Concern around coronavirus and its impact on global growth has roiled markets in recent weeks, and remained top of mind Friday.
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Coronavirus fears send tourism and China-focused consumer stocks plunging
Here’s a look at the major indices as of midday Friday:
American Airlines and United Airlines both announced they would suspend flights to China amid the outbreak.
The Allied Pilots Association, a pilot union, said Thursday it was suing American Airlines to stop flights to the country.
American Airlines stock fell as much as 3.5 per cent and United Airlines 3.09 per cent Friday.
Individual names still notched gains amid the alarm. Amazon reached $US1 trillion market capitalisation for its second time in history after announcing blockbuster earnings Thursday.
Colgate Palmolive jumped 8.53 per cent after beating Wall Street’s revenue and organic sales estimates.
Meanwhile, part of the US Treasury yield curve inverted, with the 10-year Treasury yield falling to 1.52 per cent versus the 3-month yield of 1.55 per cent.
An inverted yield curve is often seen as a recessionary signal. Gold, widely seen as a safe-haven asset, was on pace for its biggest gains since August.
The World Health Organisation announced Thursday it would classify coronavirus as a public health emergency, but markets took solace that WHO stopped short of calling for trade or travel restrictions.
This article first appeared on Business Insider Australia, Australia’s most popular business news website. Read the original article. Follow Business Insider on Facebook or Twitter.