As U.S. investors evaluate weekend news regarding China’s coronavirus outbreak, tech stocks are among those that have been hit hard by coronavirus fears in early trading today. China on Monday expanded sweeping efforts to contain a viral disease by extending the Lunar New Year holiday to keep the public at home and avoid spreading infection as the death toll rose to 80.
Chinese officials have confirmed more than 2,700 cases of the virus, with 80 dead. What’s more, the Centers for Disease Control and Prevention has confirmed the fifth coronavirus case in the U.S.
The news has investors in “risk off” mode in common Wall Street parlance. They are selling stocks and buying haven investments.
Dow Jones Industrial Average and S&P 500 futures are off 1.6%. Nasdaq Composite futures are down 1.9%. Oil prices are dropping as well as investors assess how factors such as restrictions on travel in China—and the broader economic impact of the disease—will affect energy demand… Some technology shares with a significant manufacturing presence in Asia are falling as well.
MacDailyNews Note: Apple CEO Tim Cook has pledged the company will donate to help support all of those affected by the Wuhan coronavirus:
As people in China and around the world celebrate the Lunar New Year, we send our love and support to the many impacted by the Coronavirus. Apple will be donating to groups on the ground helping support all of those affected.
— Tim Cook (@tim_cook) January 25, 2020
This virus has a long way to go before it’s under control. China was caught flat-footed, as was the rest of the world. My greatest fear is that it will mutate.
In Australia, there are 10 million P2 filtered masks held by the government (for bushfire smoke) and thus far they have refused to release some of them for health workers. There are NO other large scale stocks in the country!
Likewise they have also NOT chartered a flight to Wuhan to repatriate 100 young Australians in that city. This is the same government that had our Prime Minister holidaying in Hawaii when the fires hit. We have now nicknamed our Prime Minister (Scott Morrison) Scotty from Marketing.
Update: The mask have finally been released for health workers