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Why does the news media say that the stock market is falling because of the coronavirus?

That does not make sense.

16 Answers

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  • 1 month ago

    It makes perfect sense, and the media is right - for once. The market rides on the economy. China has shut down all factories, all - just about everything. At least a dozen U.S. businesses shut down their China operations. That's a huge chunk of U.S. business lost. Trump brought back many businesses from China early on in office but not all businesses could or would come back.

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  • 1 month ago

    whenever there is a panic in the world, people also panic with their money.  the more money you have, the more reason to panic. that affects the market in a big way. 

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  • Amy
    Lv 7
    1 month ago

    The global supply chain has been disrupted by shutting down trade with China, which manufactures a huge proportion of the goods sold by american companies (phones, clothing, everything). There's also a serious chance that quarantines will disrupt trade with South Korea (which makes computer chips).

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  • 1 month ago

    China has been at a standstill since it began. The financial losses to American industry located in China and others who do business with China are staggering. It's said that if it begins to spread in the U.S. we'll react similarly. Just imagine the financial impact should schools close, industries shut down, restaurants close, Disney and other parks close, etc. How many millions will be out of work during this period? It should make sense to you now. 

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  • zipper
    Lv 6
    1 month ago

    Excuse: it makes a lot of sense, if people are staying home or sick they are not out buying items, so demand falls, new orders do not come in so production needs to be cut back, income goes down so stock values drop. Makes a lot of sense if you understand business!

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  • Anonymous
    1 month ago

    The stock market hates uncertainty. We have lots of that now.

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  • 1 month ago

    if industry looses workers due to mass illness and shops

    close due to the virus it will damage  the World economy.

    Many small businesses will go bankrupt and investors will

    loose money the stock market in not keen to invest until

    there is a clearer picture of the damage caused by coronavirus. It is a worrying time for rich and poor alike!

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  • Murzy
    Lv 7
    1 month ago

    Much of the world's manufacturing is done in China. This has affected everything worldwide.

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  • JetDoc
    Lv 7
    1 month ago

    Actually, it makes perfect sense. The stock market rises and falls depending on the world's business climate. When events cause a decline in business profits, like what is happening now with the coronavirus scare, stock values decrease, and traders tend to sell off stocks. The Dow-Jones average has dropped more than 1000 points in just the past two days, and may fall further as factories close to control the spread of the virus.

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  • Anonymous
    1 month ago

    Investors are predicting the pandemic will disrupt the supply chain. 

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