Sentiment in the stock market was downbeat as investors returned from a long holiday weekend to headlines regarding a new disease originating in China that has health officials worldwide on alert and as well as in the U.S., there was no market-moving economic data was reported. Of note, the IMF issued a forecast for global growth of 3.3% this year, up from the projected 2.9% for 2019 and marking the fund's first projected acceleration in growth in three years.
Shares of pharmaceutical makers end lower amid concerns over new coronavirus in China. Meanwhile, other travel-linked stocks like Macau casino operators Las Vegas Sands (LVS), Wynn Resorts (WYNN), MGM Resorts (MGM) and Melco Resorts (MLCO), fell amid investors’ concerns over the potential impact on tourism as the virus continues to spread that has infected almost 300 people and killed six. Among the 11 major sectors in the S&P 500, seven sectors have ended the session in the red, with energy, industrials, and materials sectors suffered most among them. So far, 2020 has picked up where last year’s rally left off as the Dow and S&P 500 were nearly 2% higher, while the Nasdaq’s gain was over 2% for the week.
As you all know how external events could stunt the stock market so now we have to observe how far and fast the coronavirus has spread through U.S. stocks. The U.S.-listed shares, airline stocks were also affected by that recent news. Such as United Airlines Holding, Delta Air Lines, American Airlines Group Inc and among them Dow Jones Transportation Average was the largest decliners for the day. Now if the travel related stock got affected then sellers of luxury goods could also feel the heat. And the trend was followed on Tuesday as the Shares of Estee Lauder Companies Inc, Tiffany & Co, Coty Inc, and LVMH Moet Hennessy Louis Vuitton S.E all were pointed red.
From Whitehouse, on Tuesday morning, President Donald Trump encouraged other nations to adopt a similar nation-focused approach to economics and political relations around the world Economic Forum in Davos, Switzerland and touted his “America First” agenda as well as took another shot at the Federal Reserve to a global audience.