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Anonymous
Anonymous asked in Business & FinanceInvesting · 1 month ago

why is the stock market dropping due to the Corona Virus outbreak? is the economy getting ready to be bad now due to it? why?

Update:

so how will this affect consumer spending in the USA ? for how long and why?

10 Answers

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  • Anonymous
    1 month ago
    Favorite Answer

    Many companies globally heavily rely on importing at components from China made in factories the Chinese have closed. Holiday companies are suffering as people avoid taking cruises or the risk of being quarantined in their hotel like the people in Tenerife. Major events like concerts and sports event are being cancelled. Even the Olympics in Japan could be postponed. Those are just a few things I can think of.

  • Erik
    Lv 7
    1 month ago

    Because people are afraid things are going to get worse.

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  • 1 month ago

    Because it's so weak and superficial and can be destroyed by a whim as it has been so often 

    • Lv 6
      1 month agoReport

      like a ponzi scheme? or a pyramid of poker cards?

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  • Anonymous
    1 month ago

    A lot of people are afraid lots of people will get sick, not be able to their usual work and everything from foods to computers to clothes... may become hard to get. 

    • Lv 6
      1 month agoReport

      so how will this affect consumer spending in the USA ? for how long and why?

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  • Anonymous
    1 month ago

    The market hates uncertainty. There is now a ton of uncertainty. And its cost most everyone who owns stocks.

  • Kieth
    Lv 7
    1 month ago

    Chinese production is down, goods and materials are in short supply, businesses are going to lose profits. That is why the market value is in decline.

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    • Kieth
      Lv 7
      1 month agoReport

      It's short term, it's just a flu, not a zombie apocalypse. Consumers will pay more for things from China.

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  • 1 month ago

    Panic over the virus has been created, largely by world wide media, and panic selling is the result.

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  • 1 month ago

    it will ..this is is a serious situation since we have no antidote for this virus and we have to thank the Chinese for it ....many lives will be lost before this new battle for human species wins over yet another virus ....the last one was HIV ...was it not !!!

    Seriously though we really must learn about dietary intakes and hygiene....bloody bat soups ....what is next cockroach souffle ...eh ???

    Source(s): MISOA.....i hope we realize we are not living in an isolated and distrusted place on planet earth !!!
  • 1 month ago

    It ios typical of the stock market to drop when such an event faces mankind.

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  • Gungy
    Lv 6
    1 month ago

    Global investor fears driven by products manufactured in China as well as international travel corporations taking a big hit. As soon as several nations get a handle on the virus, the market will bounce back quick.

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