The viral outbreak that began in China has now infected more than 73,000 people and continues to hurt businesses worldwide. The majority of the cases and deaths remain centered in China. Businesses continue to feel the economic impact from the virus. The Beijing auto show, the industry's biggest global event of the year, is being postponed indefinitely from its April date.
The selloff came as investors weighed the impact of the virus outbreak in China on Apple and other major companies. Apple Inc. said its second-quarter earnings would take a hit from the viral outbreak in China, reigniting fears that the disease may disrupt manufacturing supply chains and have broad implications for the global economy and financial markets.
Technology stocks accounted for a big slice of the selling. Apple shed 1.8% after the tech giant warned its revenue may be lower than forecast in the fiscal second quarter because production has been curtailed and consumer demand for iPhones has slowed in China. Some chipmakers, which also rely heavily on China for sales and supplies, also fell. Intel shed 1.7%.
Disappointing earnings news from Walmart (WMT) also weighed on the markets after the retail giant reported weaker than expected fourth quarter results and provided disappointing guidance.
Meanwhile, the Federal Reserve Bank of New York released a report showing growth in New York manufacturing activity saw a notable acceleration in the month of February. The New York Fed said its general business conditions index climbed to 12.9 in February from 4.8 in January, with a positive reading indicating growth in regional manufacturing activity.
Powered by Capital Market - Live News