Wall St. ebbs away record highs as Chinese corona-virus outbreak reaches US shores



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Wall St. ebbs away record highs as Chinese corona-virus outbreak reaches US shores

On Tuesday, the 21st of January 2020, as US investors came back in to their trading desks following the ‘Martin Luther King Jr. day’ holiday, all three key indices of Wall St. were pulled back from their record-closing highs following reveal of a report that a recent outbreak of an unidentified strain of coronavirus in China which had led to the death of six people thus far, had reached the United States, while IMF’s (International Monetary Fund) trimming of global growth forecast had added to further strains.

In point of fact, despite a solid beginning of the day all three US stock indices fell across the board and widened their gap with the record-closing highs after Centres for Disease Control and Prevention had confirmed that they had received the first case of coronavirus in the United States.

Meanwhile, adding that the US stocks could turn their tails and might witness a flight-to-safety response if the coronavirus outbreak could not be contained, a senior market strategist for Allianz Investment Management in Minneapolis, Charlie Ripley said on Tuesday’s (January 21st) Wall St.

closure, “We’re seeing headline risk introduced to the market and any time there’s new uncertainties, we see more volatility and flight to quality and investors fleeing risk assets. Today’s news around the coronavirus is a reminder that risks remain, and it’s something that investors will be paying attention to in the coming weeks and months.

” On top of that, since both China and the United States came across the virus outbreak just days before the Chinese Lunar New Year, the travel stocks took the heaviest header on Tuesday’s (January 21st) Wall St.

Citing statistics, on Tuesday’s (January 21st) Wall St. wind down, trade-sensitive Dow shed 0.52 per cent to 29,196.04, S&P shed 0.27 per cent to 3,320.79, while the tech-heavy Nasdaq wrapped up the day down by 0.19 per cent to 9,370.81.