The Dow Jones Industrials fell over 1,000 points on Monday as this logs the worst day in two years as more coronavirus cases outside of China erupt and cause global fear. South Korea, Italy and Iran reported an increase in coronavirus cases over the weekend.
Goldman Sachs has cut its U.S. growth forecast and anticipated a harsher reaction from the coronavirus. Major S&P sectors fell as technology stocks led the charge by falling 4.1%. Apple, Inc. (NASDAQ: AAPL) fell 4.4% as data indicated that smartphone sales in China fell in January.
“It is not as though the numbers have changed dramatically but what has changed is the geography, which adds a new level of concern,” said Art Hogan, chief market strategist at National Securities in New York. “What the market is trying to predict here is how large will this get globally, and when will it start to peak.”
The CBOE Volatility Index reached its highest level since January 2019. Momentum indicators such as the 50-day moving average on the S&P 500 and the 100-day moving average on the Dow slipped.
Health insurers such as Cigna Corp. and UnitedHealth Group Inc. fell short almost 8% as Bernie Sanders landed a victory in Nevada. Bernie Sanders is in favor of eliminating private health insurance.