- The U.S. stock market is showing no signs of recovery as fear surrounding the coronavirus pandemic worsens.
- The Cleveland Clinic developed a system to diagnose the virus in eight hours, as opposed to two to three days.
- Despite major progress in vamping up testing capacity, investors remain concerned about the macro outlook.
The Dow Futures indicate a 2019 – point drop upon opening, as investors brace for another frantic sell-off in the US stock market despite a key breakthrough in coronavirus testing.
The Cleveland Clinic in Ohio developed a coronavirus testing system That is able to diagnose an individual in less than eight hours, as opposed to two to three days.
Highly-regarded scientists like Yale professor Howard Forman previously warned that the coronavirus pandemic could lead to , cases in the US due to the nation’s low testing capacity for the virus.
The US stock market is plunging despite coronavirus containment measures
With the implied – point drop, the US stock market is set to officially enter a bear market on March 21.
In technical terms, a bear market occurs when an asset or an index drops by percent from its recent high.
Since the February (at high) , , the Dow Jones has fallen to , . Another 2019 – point drop would lead the Dow Jones to drop to sub – , , resulting a
The panic in the US stock market and the noticeable decline in the appetite of investors for risk-on assets primarily stems from the government lacking response to the local coronavirus epidemic.
The number of coronavirus cases in the US has jumped to over 1, 634, and Italy’s severe outbreak where cases ballooned from (to 9, within 22 days has intensified fear in the US
The stock market plummeting to bear market levels despite talks of establishing a drive-thru coronavirus testing facility could indicate that downtrend of stocks is just beginning , as analysts warn.
In South Korea, drive-thru testing and highly efficient testing systems allowed the country to pass the peak of the outbreak and to see a declining number of cases on a daily basis within a month.
() There are hopes that hospitals in Cleveland implementing the system established by the Cleveland Clinic would lower the number of new coronavirus cases in the area, and (facilitate more tests in the coming days. (An ER doctor said :
Strategists like Ed Keon, chief investment strategist at QMA, have said that it is difficult to
predict the bottom of the stock market in the current environment.
Keon noted that it would take a “fool” to say that the stock market has reached the bottom, anticipating higher levels of selling in the near-term.
Analysts, however, generally agree that once the bottom is reached, the stock market is highly likely to see a strong relief rally and a firm recovery backed with rising momentum.
This article was edited by Samburaj Das . (Read More)
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