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Dow Falls Another 800 Points as Coronavirus Outbreak Worsens

By Mark Prvulovic – Feb 25, 2020 at 4:09PM

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Major indexes have lost about 6% of their value over the past two days.

As the COVID-19 coronavirus outbreak continues to spread outside of China, Tuesday saw continued losses in the financial markets. The Dow Jones Industrial Average fell by 879 points, or 3.1%, while the S&P 500 is down 3%. The tech-focused Nasdaq has also given back about 2.8% of its value today.

Tuesday's losses follow what was already a difficult start to the week. Yesterday, the Dow fell by another 1,000 points, about 3.6%, in its worst single trading day in two years. The number of COVID-19 cases has grown to 80,407, and while most of these cases are still in mainland China, countries like Italy and South Korea have seen an alarming surge in cases over the past couple of days.

Global stock market arrows going downward.

Image source: Getty Images.

Companies are becoming increasingly worried that a wider COVID-19 coronavirus outbreak could lead to significant economic disruptions, especially if that outbreak occurs outside of China. The World Health Organization (WHO) has repeatedly warned that the international community should be ready for a possible pandemic, saying that countries need to be "in a phase of preparedness" should things get worse.

A good time for vaccine makers

While the markets have seen significant losses, some biotech stocks that are developing possible COVID-19 treatments have seen their stock's soar. Moderna (MRNA 3.01%) announced yesterday that the first batch of its mRNA COVID-19 vaccine was shipped and ready for human trials.

Inovio Pharmaceuticals (INO 7.23%) and Novavax (NVAX 13.04%), two small-cap companies that are also working on a COVID-19 treatment, are both down about 5% today, giving back some of the impressive gains they made on Monday.

Mark Prvulovic has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Novavax, Inc. Stock Quote
Novavax, Inc.
NVAX
$21.33 (13.04%) $2.46
Inovio Pharmaceuticals, Inc. Stock Quote
Inovio Pharmaceuticals, Inc.
INO
$1.78 (7.23%) $0.12
Moderna, Inc. Stock Quote
Moderna, Inc.
MRNA
$123.29 (3.01%) $3.60

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