ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintSite TitleTitle ChevronIcon Twitter
Markets

Dow drops over 1,000 points, with airline stocks routed

Nikkei futures point to sharply lower opening in global sell-off

U.S. stocks opened sharply lower Monday as investor concerns grew over reports of coronavirus outbreaks outside China.    © Reuters

NEW YORK/TOKYO -- U.S. stocks ended a brutal session Monday down more than 3% as investors worried about the global economic impact of coronavirus outbreaks rapidly spreading beyond China.

The Dow Jones Industrial Average plunged 1,030 points, or 3.6%, to close with its biggest one-day decline in two years.

The broader S&P 500 index and the tech-heavy Nasdaq both fell more than 3%, following European and Asian shares in a global sell-off after Italy and South Korea reported surges in infection cases.

Airlines were among the hardest hit, with American Airlines down more than 8% and Delta Air Lines falling 6%. Virus-related travel declines now threaten Asian carriers' viability.

Technology stocks were not immune to the sell-off. Apple, Microsoft, Intel and Qualcomm all tumbled more than 4%.

As investors showed concerns over the virus' impact on economic activity, money moved into gold and U.S. Treasuries, sending long-term interest rates as low as 1.36%.

Dave Lutz, head of exchange-traded fund trading at JonesTrading, said markets were witnessing a "flight to quality" in assets.

Monday was a down day for most Asian markets. South Korea's benchmark Kospi dropped nearly 4% to a roughly two-month low, with Samsung ElectronicsSK Hynix and other blue chips sinking.

The Shanghai Composite Index fell 0.3%, while Hong Kong, Taiwan and Singapore benchmarks dropped 1.2% to 1.8%.

The Japanese market was closed for a holiday. But futures were pointing to a decline of 1,060 yen, or 4.5%, as of 8 p.m., before U.S. markets opened. 

"The Nikkei Stock Average could fall below 22,000 this week," said Tetsuro Ii, president of Tokyo-based Commons Asset Management, compared with Friday's close of 23,386.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends April 30th

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media