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Stocks pulled back from record levels on Tuesday after the Centers for Disease Control told Reuters that a traveler from China was diagnosed with the first U.S. case of coronavirus in Seattle.
The Dow Jones Industrials slumped 152.06 points to 29,196.04
The S&P 500 slipped 8.83 points at 3,320.79
The NASDAQ dipped 18.14 points to 9,370.81.
The Dow snapped a five-day winning streak while the S&P 500 and NASDAQ posted their first loss in four sessions.
Shares of casino and hotel companies Wynn Resorts and Las Vegas Sands fell more than 6% and 5%, respectively, amid fears that the coronavirus outbreak in China would dent international travel.
Airline stocks hit their lows of the day following the news. United Airlines and Delta Air Lines both declined more than 2.5%. Shares of Southwest were down 2.7%, and American Airlines listed lower 4.2%.
The corporate earnings season continued after the bell with Netflix releasing its latest quarterly figures. So far, the reporting period is off to a good start. More than 70% of the S&P 500 companies which have posted better-than-expected quarterly earnings,
Boeing shares added to the downturn, falling more than 3% on news the company doesn’t expect regulators to sign off on the beleaguered jet, the 737 Max, until June or July. The shares were briefly halted.
Sentiment across global markets had taken a hit overnight amid concerns about the virus.
The outbreak of the new coronavirus in China has killed four people with confirmed cases exceeding 200 ahead of the Lunar New Year holiday, during which hundreds of millions of people are expected to travel. Late on Monday, Chinese authorities confirmed that the virus is contagious.
Meanwhile, the International Monetary Fund (IMF) on Monday downgraded its global economic growth forecast from 3.4% to 3.3% for 2020.
The U.S. economy is projected to grow by 2.0% this year, a downward revision of 0.1 percentage points compared with the IMF’s October 2019 forecast.
Prices for the 10-Year U.S. Treasury gained sharply, lowering yields to 1.77% from Friday’s 1.83%. Treasury prices and yields move in opposite directions.
Oil prices slid 29 cents to $58.25 U.S. a barrel.
Gold prices dipped $1.60 to $1,558.70 U.S. an ounce.
