Markets shudder again on fears, extending recent rout

new york — Investors are dumping stocks again Thursday as fears spread that the growing coronavirus outbreak will weigh down the global economy. More big-name companies are warning they’ll be affected and countries are taking increasing drastic measures to contain the virus.

The S&P 500 index is now 10 per cent below the record high it set last week and its headed for its worst week since October 2008. If the S&P closes that low it would mark what market watchers call a “correction,” a normal phenomenon that analysts have said was long overdue in this bull market, which is the longest in history.

Microsoft and Budweiser maker InBev became the latest to warn investors about the virus’ potential hit to their finances.

Bond yields continued sliding as investors shifted money into lowerrisk assets. The yield on the 10year Treasury fell further into record low territory, to 1.28 per cent from 1.31p er cent late on Wednesday. Gold prices edged higher. The market recovered some of the ground it lost in the early going, and the S&P 500 was down 2.4 per cent as of 11:45 a.m. Eastern time. after being down as much as 3.5 per cent earlier.

The Dow Jones Industrial Average lost 599 points, or 2.2 per cent, to 26,367. It was down as much as 960 points earlier. The Nasdaq slid 2.5 per cent.

American Airlines fell 5.2 per cent as airlines continue to feel pain from disrupted travel plans and suspended routes.

The virus has now infected more than 82,000 people globally and is worrying governments with its rapid spread beyond the epicenter of China.

In California, health officials say a new coronavirus case could be the first in the U.S. that has no known connection to travel abroad or another known case, a possible sign the virus is spreading in a community.

Japan will close schools nationwide to help control the spread of the new virus. Saudi Arabia banned foreign pilgrims from entering the kingdom to visit Islam’s holiest sites. Italy has become the center of the outbreak in Europe, with the spread threatening the financial and industrial centers of that nation.

The price of crude oil fell 4.7 per cent. The price has been falling sharply as investors anticipate that demand for energy will wane as the economy slows.

At their heart, stock prices rise and fall with the profits that companies make. And Wall Street’s expectations for profit growth are sliding away.