By Ryan Montes
[Editor’s Note: Since Mr Montes wrote this article the stock market has rallied to close above 5% (Dow Jones Industrial Average), its biggest gain since 2009. The S&P closed at 4.6%, it’s best one-day gain since 26 December 2018. The Nasdaq Composite also closed with its best day since 2018 with a gain of 4.5%.]
Since the Coronavirus, originating in China, began spreading worldwide like wildfire, the United States is already getting cases. Not only is the mysterious virus affecting many and proving deadly to some, it is also severely affecting the Stock Market. The market’s numbers are even reminiscent of the 2008 stock market crash caused by the financial crisis.
The Stock Market is extremely imperative to not just the United States, but the entire globe. Without it, for example, trades with other countries wouldn’t be possible. It’s the primary source in funding and expansions by companies and is basically the heartbeat of the world.
On Friday, the Dow Jones closed at 357 points (1.4%) after being in the red for seven days. The whole week, it dropped a whopping 3,583 points with it’s worst day being last Thursday. The last time the Dow was this low was October 2008 where it fell to 12.4% (CNN). Currently, the Dow is still falling with a current total of 25,409.36 points, a drop of over 350 points, similar to the prior day’s closing.
The same story applies to S&P 500, another major part of the stock market. It has also been in the red for seven days and has had its biggest drop since 2008. S&P 500’s closing the other day stood in the red at 2,954.22 points dropping nearly 24 points. So far, it shows no sign of going green anytime soon. However, the NASDAQ is completely opposite.
The NASDAQ is currently thriving in the green, with the Thursday’s closing being at a total of 8,567.37 points, equivalent to a +0.89 rise. It previously closed at 8,566.48 points, so it’s maintaining a steady balance, so to speak. How long this trend will stay where it is depends on the severity of the Coronavirus in the United States, just like every other major stock in the market.
With the Stock Market’s huge plunge, it shouldn’t only be a time to panic but also a time to investigate stocks and even sectors to buy if you plan to do so. The reason for this is quite simple, the Coronavirus will not lead our country into recession. Here’s a list of stocks that would benefit you in the long run: Wal-Mart (WMT) -2.46%, Macy’s (M) +2.56% , Proctor and Gamble (PG) -0.24% , Kraft Heinz (KHC) -0.8%, Facebook (FB) +1.43%, Apple (AAPL) -0.06%, Amazon (AMZN) -0.03%, and Netflix (NFLX) -0.72%. Don’t let the negative percentages turn you away from these stocks as they will eventually go back into the green.
The United States is not ready to go through another crash. If that happens, many people will yet again be unemployed, homeless, and hurt. To avoid this, safety must always come first. The Coronavirus is spreading so rapidly that new cities that didn’t initially have cases are finding that people are becoming infected within days. The Coronavirus is currently being spread by people who don’t know they have it through the air and through water (cruise ships), as well as becoming infected when they’ve had no contact with anyone who has been to China. Be safe wherever you go right now because there’s no way to know all the details of how it’s being spread in the United States.