The Coronavirus’s Effect on the Stock Market | Peter Hong

The Dow Jones Industrial Average, occasionally referred to as the Dow, is a stock market index that measures the overall performance of thirty valuable companies listed in various stock exchanges in the United States. The Dow Jones Industrial Average typically represents the economy’s health in an accurate manner. However, due to Wall Street’s concerns related to the recent Coronavirus outbreak, the Dow has experienced its worst trading week in over a decade as once optimistic investors shifted towards a state of alarm. 

Although a handful of people in the United States are confirmed to be carriers of the Coronavirus, schools remain in full operation, and businesses are still keeping up with their day to day duties. Nothing extremely dreadful on a massive scale has occured within the United States, but, many experts argue that the markets are down because overseas conditions imply that unsatisfactory business conditions are approaching in the near future. In regards to individual company performance, some are expected to bounce back in sales while others will be unable to bounce back simply because of the structure of those companies. If airline companies design their planes to be fully occupied by passengers, this would mean that the half empty plane trip sales would never return. 

Furthermore, there are unanswered questions about the supply chain in foreign countries such as the economic powerhouse China. For instance, Apple’s main supply factory has been shut down in China due to the Coronavirus outbreaks. This means that the company will be unable to fully manufacture their state of the art technology, and as a result consumers would not be able to purchase them. This is why technology companies such as Apple have endured an especially rough hit regarding their stock price, and many investing services are recommending that investors pull the trigger on these companies in the stock market, as the prices of these stocks might never be this low.