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Here’s why the stock market may be overreacting to the coronavirus threat
The continued spread of the coronavirus appears to be hitting global markets like a similar outbreak in 2003, but the history of recent health scares and market internals may mean the pullback won’t last long and investors are currently overreacting. Stocks opened lower on Monday, with the Dow Jones Industrial Average down more than 500 points, or 1.8% at one point, after confirmed cases of the coronavirus globally rose over the weekend. Markets also slumped in early 2003 amid an outbreak of severe acute respiratory syndrome, or SARS, but many major indexes finished the year strong. “If the outbreak follows the ... (full story)
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