The coronavirus wiped $3.18 trillion in market value from U.S. stocks this week, according to estimates from S&P Dow Jones Indices.
- The S&P 500 lost $203 billion in value on Friday, according to estimates from S&P Dow Jones Indices.
- Friday’s losses bring the weekly total for U.S. stocks to $3.18 trillion, the firm’s Senior Index Analyst Howard Silverblatt told CNBC.
- Stocks cratered again on Friday as investors fled riskier assets amid intense fears about a slowdown in global growth caused by the deadly coronavirus.
The spreading deadly virus has sent shock waves through the markets. Companies like Microsoft, Apple, Nike, United Airlines and Mastercard have all raised flags about the coronavirus and its impact on their earnings.
Another problem is that investors are not trained in epidemics, let alone pandemics. That creates a fear of the unknown. In that environment, investors are selling first and asking questions later.
Wall Street is now bracing for weaker corporate profits ahead because of the coronavirus. Goldman Sachs warned that 2020 S&P 500 earnings growth could be wiped out by the damage done to supply chains and demand.
Earnings growth for U.S. companies will be stagnant in 2020 as a result of the coronavirus, according to Goldman Sachs.
“US companies will generate no earnings growth in 2020,” Goldman’s chief U.S. equity strategist, David Kostin, said in a note to clients Thursday. “We have updated our earnings model to incorporate the likelihood that the virus becomes widespread.”
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