Dow Jones suffer its biggest one-day decline since February 2018, deleting nearly 1000 points… and keep going.
Investors also stepped up their flight to haven assets, pushing gold prices up 1.6% to $1,674.60 a troy ounce. Increased demand for U.S. government bonds sent the yield on the benchmark 10-year note down to 1.367%, approaching the all-time closing low of 1.364%.
As we expected, the correction for the oil is over and now prices are once again heading for bottom test around $49. In recent weeks, oil prices have been suppressed by investors’ fears that a viral outbreak will reduce demand.
So far in Italy, six people have died from the illness, making it the world’s third-biggest national outbreak after China and South Korea. More than 50,000 people remain under quarantine in the country.
The rapid increase of cases outside of China spooked investors Monday, portfolio managers said, especially as questions linger about how exactly the virus is spread. Infections are now emerging in people who haven’t traveled to China or come into contact with confirmed cases.