By: Krystal Tome
31 January 2020
A new deadly virus originating in China, coronavirus, is affecting the stock market in the United States and around the world.
On Monday, January 27th, 2020, over 450 S&P 500 stocks went down due to expectations related to the Coronavirus. The S&P 500, includes companies such as Apple, Microsoft, Exon, Mobil, Johnson & Johnson, and Amazon among many others. Coronavirus has already infected about 4,500 people around the world. The great majority of the infected people are in China. There are already over 100 deaths confirmed in China due to the Coronavirus.
Al Jazeera. “China Coronavirus: All You Need to Know in 500 Words.” China News | Al Jazeera, Al Jazeera, 30 Jan. 2020, www.aljazeera.com/news/2020/01/china-coronavirus-500-words-200127065154334.html.
The stock markets understand that the spread of the virus in China can affect the economy there. Since China buys and sells products to many and from many other countries, if China’s economy suffers, other economies will suffer together.
China is the second-largest economy in the world. The United States is number one with a GDP of about 21.1 trillion. China is the second with a GDP of about 15.5 trillion. GDP is a measure of how many products and services are generated inside of the country in one year.
Because coronavirus evokes many sanitary issues, there are some companies benefiting from the concerns related to the Coronavirus. Companies in the cleaning product industry’s stocks went up on Monday, January 27th. Some of these companies are Clorox, Procter & Gamble, and Colgate-Palmolive. One specific product that had a spike in sales is hand sanitizer. Hand sanitizer stocks rose 70% in the past few days due to the concern dealing with sanitation and the prevention of illnesses.
Isbitts, Rob. “One Big Reason Why The Stock Market Keeps Going Up.” Forbes, Forbes Magazine, 5 Mar. 2019, www.forbes.com/sites/robisbitts2/2019/03/05/one-big-reason-why-the-stock-market-keeps-going-up/#5d15a8c66f6a.
ReferenceThe S&P 500 is an index that follows the publicly traded stocks of the 500 largest companies in the United States. Coronavirus taking over is an issue to the stock market because of the large effect China has upon the economies of other major countries around the world.
Al Jazeera. “China Coronavirus: All You Need to Know in 500 Words.” China News | Al Jazeera, Al Jazeera, 30 Jan. 2020, www.aljazeera.com/news/2020/01/china-coronavirus-500-words-200127065154334.html.
“Coronavirus Live Updates: Wuhan Mayor Offers to Resign as Death Toll Rises.” The NewYork Times, The New York Times, 27 Jan. 2020, www.nytimes.com/2020/01/27/world/asia/china-coronavirus.html.
GDP Ranked by Country 2020, worldpopulationreview.com/countries/countries-by-gdp/.
Isbitts, Rob. “One Big Reason Why The Stock Market Keeps Going Up.” Forbes, Forbes Magazine, 5 Mar. 2019, www.forbes.com/sites/robisbitts2/2019/03/05/one-big-reason-why-the-stock-market-keeps-going-up/#5d15a8c66f6a.
Staff, Motley Fool. “What Is the S&P 500?” The Motley Fool, The Motley Fool, 22 June 2016, www.fool.com/knowledge-center/what-is-the-sp-500.aspx.
Tappe, Anneken. “Dow Tumbles More than 450 Points as the Coronavirus Outbreak Worsens.” CNN, Cable News Network, 27 Jan. 2020, www.cnn.com/2020/01/27/investing/dow-stock-market-today-coronavirus/index.html?utm_source=CNN%2BBusiness%3A%2BMarkets%2BNow&utm_campaign=db9d328dba-EMAIL_CAMPAIGN_2020_01_27_10_00&utm_medium=email&utm_term=0_c58d95e6d3-db9d328dba-107295337.
