US stocks were swept up in a global sell off on Monday as the number of coronavirus infections around the world have surged.
According to the reports, the Dow Jones Industrial Average plummeted almost 1000 points.
The Dow Jones industrial average fell more than 997 points in early trading on Tuesday for a 3.4% decline. The S&P 500 tumbled roughly 2.5%, while the tech heavy Nasdaq Composite index lost 3%.
Every sector in the S&P 500 traded in the red, with the energy and information technology leading declines,
The index of energy names fell 3.85% and information technology lost 3.35%. Utilities and real estate saw the fewest losses, Bloomberg terminal data show.
On the other hand, the Cboe Volatility Index 0r VIX, which is widely known as the stock market’s fear gauge, spiked 40% to its highest level since August.
The latest sharp move lower comes as the coronavirus outbreak has spread to more than 30 countries. The IMF also cut its yearly growth projection for China by 0.4 percentage.
Outside of China, there have also been reports of the coronavirus spreading rapidly in Japan, Italy and South Korea.
Coronaviruses are a large family of viruses that cause illness ranging from the common cold to more severe, even death. Coronavirus are zoonotic, meaning they are transmitted between animals and people.
It is pertinent to mention here that this virus has now spread to nine Middle Eastern countries, with more than 79,000 cases worldwide.
The worldwide death toll from the novel coronavirus has risen to 2,612.