The falls in US market came as intense fears about a slowdown in global growth caused by the rapid global spread of deadly coronavirus and to disrupt global trade. The spreading deadly virus has sent shock waves through the markets. Companies like Microsoft, Apple, Nike, United Airlines and Mastercard have all raised flags about the coronavirus and its impact on their earnings.
Stocks got a slight reprise when Federal Reserve Chairman Jerome Powell said Friday the central bank is monitoring the coronavirus for risks it poses to the U.S. economy and pledged action if necessary. Right after that, a report that the Trump administration is entertaining the idea of tax cuts to combat the economic impact of the coronaviorus.
In economic data: consumer spending increased a mild 0.2% last month, the government said Friday. Meanwhile, incomes shot up 0.6% the biggest gain in 11 months but the increase included annual cost-of-living increases in Social Security benefits as well as tax credits tied to the Affordable Care Act.
Separately, a measure of business conditions in the Chicago region improved in February but remained in contraction territory. The Chicago PMI business barometer increased to 49.0 this month from 42.9 in January, MNI Indicators said on Friday. Any reading below 50 indicates worsening conditions. A report on trading activity showed that the U.S.'s trade deficit in goods narrowed 4.6% in January, according to the Commerce Department's advanced estimate released Friday.
In Commodity news: Crude oil prices took a dive as the global futures market broke below $50 per barrel, a closely watched number that signals whether oil companies and oil-producing countries can make profits. West Texas Intermediate, the U.S. oil gauge, was selling below $45 per barrel. Brent Crude prices were just under $50.
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