COVID-19 Infects the Stock Market

(COVINGTON, La.) — COVID-19 has heavily impacted the stock market, resulting in turbulent times for many stockholders and investors. The Dow Jones international average, S&P 500, and the Nasdaq Composite all dropped significantly, with the Dow dropping over 1,000 points, or 3.6%. With 120,000 people infected and over 4,000 deaths around the world, the stock market’s fluctuation is only one effect of the hit that traveling companies and agencies have taken in response to the outbreak. Delta Airlines dropped nearly 7.4% because travelers are hesitant to book flights because of the virus’s ability to spread rapidly. According to the International Air Transport Association, anywhere from $63 billion to $113 billion could be lost in revenue until the virus is contained. 

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International commerce was hit as well, with Chinese manufacturing companies such as Nissan and Hyundai facing severe production delays. Since China is the world’s biggest supplier of oil, the International Energy Agency predicts the first drop in oil demand in over a decade, totaling about 435,000 barrels. On March 9, oil lost about a third of its value, which is the most significant decline since the 1991 Gulf War. 

Universities including UGA, LSU, NYU, and Syracuse, to name a few, have rerouted or cancelled their spring study abroad programs as well. The stock market wasn’t the only thing that dropped due to the virus; attendance at sporting events has plummeted with the possible policy of not allowing fans to attend games. In England, premier league soccer clubs have been encouraged to avoid pregame handshakes and to prepare for matches with no fans. There are also concerns about the 2020 Summer Olympics in Tokyo being affected by the outbreak, but the status of the event could be undecided until as late as May.

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