U.S. stocks logged a sharp drop on Friday as investors struggled with the uncertain economic impact of the coronavirus, amid reports of travel disruptions and the suspension of flights to China.
The S&P 500 fell 1.8% to end around 3,225. The Dow Jones Industrial Average shed 605 points, or 2.1%, to finish near 28,254, based on preliminary numbers. The Nasdaq Composite tumbled 1.6% to end around 9,151. The Dow and S&P turned negative for the year on Friday.
For the week, the S&P was down 2.1%, the Dow lost 2.5%, and the Nasdaq shed 1.8%. In January, the S&P edged 0.2% lower, the Nasdaq gained 2%, and the Dow shed 1%.
Economists and investors say the coronavirus could deal a blow to expectations for a global economic recovery this year, after last year's slowdown due to U.S.-China trade hostilities.
In addition, Delta and American Airlines stopped flights to China after the U.S. government advised travelers to steer clear of the nation.
Treasury markets were also displaying trepidation over the U.S. and global economic outlook, after the spread between the 10-note yield and the 3-month bill inverted again on Friday.
Source : Market Watch