US stocks suffered on Friday as the COVID-19 coronavirus continues to spread. The price falls followed a day of stunning gains as Chinese banks cut interest rates in a bid to stave off continuing economic distress.
As the closing bell rang in New York on Friday, US stocks recorded a 1% net loss for the week. The Dow Jones Industrial Average fell by 227.57 points to 28,992.41, while the S&P 500 fell by 35.48 points to 3,337.75 and the Nasdaq Composite fell by 174.38 points to 9,576.59. However, all three indices remain near their historic highs.
The fall comes in the wake of major gains in financial stocks on Thursday as the Bank of China slashed interest rates in an attempt to prop up flagging banks. However, economic experts noted that growth prospects were slim even before the recent developments.
“Even if the outbreak recedes, global growth is still set to fall to zero in the first quarter, before bouncing back over the remainder of the year,” Peter Berezin, chief global strategist at BCA Research, told CNBC. “Thus, a near-term hit to corporate earnings now looks unavoidable.”