US stocks suffer massive losses on mounting fears over coronavirus spreading

Dow Jones and S&P 500 stock indexes tanked as trading in the US opened on Monday following an earlier sell off in European and Asian markets amid concerns the coronavirus epidemic may lead to a prolonged global economic slowdown.

The Dow Jones Industrial Average shed more than 970 points or 3.4 percent – the biggest one-day point loss since February 2018, when it fell more than 1,000 points. The S&P 500 plummeted more than 3 percent and the Nasdaq Composite was down nearly 4 percent after the opening bell.

The decline in the US stock market comes as investors are concerned over the rapid spread of the pneumonia-like virus, that originated in China. The number of cases outside the country spiked over the weeked, forcing Italy and South Korea to step up efforts to battle the outbreak.

Earlier on Monday, the epidemic tanked stocks in Europe with all major indices losing between 3.5 percent and 4.3 percent. Asian markets also closed in the red, except for Japan as its stock exchange was closed for a scheduled holiday.

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