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Dow Jones lost more than 1,000 points due to increased fears of global recession

UNITED STATES (OBSERVATORY NEWS) — The Dow Jones Index fell more than 1,000 points on Friday for the third time this week due to investor fears caused by the spread of coronavirus, which threatens the global economy with a recession.

Over the week, the S&P 500 lost nearly $ 3 trillion in value, with the result that all three major stock indexes could record the sharpest weekly drop since the global financial crisis in 2008.

Virus infections have been reported on three continents. The total number of cases outside of China was 3,700, and about 70 people died. Currently, countries in addition to China account for about three quarters of new infections.

The inversion of the US government bond yield curve deepened even further, reinforcing fears of a recession.

By 18:26 Moscow time, the Dow Jones Industrial Average index fell by 3.30% to 24.916.36 points, the S&P 500 – by 3.1% to 2.887.64 points, and the Nasdaq Composite – by 2.38% to 8.362.859 points .

Traders are confident that the US Federal Reserve will lower its key rate next month, but disagree on how this will help mitigate the effects of the spread of coronavirus.

US personal spending in January rose 0.2% on a monthly basis, while revenue rose 0.6%, the Commerce Department said.

The Purchasing Managers Index (PMI), calculated by the Institute for Supply Management-Chicago, rose in February to 49.0 points from 42.9 points in January.

The US Consumer Confidence Index, calculated by the University of Michigan, was 101.0 points in February with a forecast of 100.9 points, indicating the final value of the index.

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