Coronavirus fears could end the bull market for stocks

Coronavirus fears could end the bull market for stocks

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The coronavirus crisis is threatening the longest bull market in history, just days before it’s set to celebrate its 11th birthday.

So can the battered bull, which just had its worst week since the financial crisis and is still bouncing up and down, stay intact until Monday, when it adds another year to its impressive streak?

After last week’s volatile ride, when the Standard & Poor’s 500 stock index plunged more than 11%, it’s a question worth asking.

The fear is that the spreading virus will continue to disrupt supply chains and could create enough panic to keep consumers out of stores and business people out of airplanes and conference halls for extended periods of time. If a shock of that magnitude were to occur, it could boost the odds of a recession and hurt corporate profits, market analysts warn.

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A golden bull sitting on top of a series of steps with a plaque that reads bull market on the step below the bull.

For the moment, the broad market still has some wiggle room. For the S&P 500 to fall 20% from its closing record high, which is the definition of a bear market, it would need to fall another 9.8 percent to 2708.92 in the next four trading sessions from Tuesday’s close of 3003.37. That would essentially require a replay of last week’s historic sell-off. And while many U.S. companies have warned that sales have slowed and future profits will be down due to the coronavirus shock, the full extent of the hit businesses and the economy will take is difficult to estimate.

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By Javier Manning

Javier has been in the field of content writing for almost 8 Years as he hails from the Biotechnology background. The edifying articles portray her craving towards language. His keen hobby of reading technological innovations related books or articles has sown the seed of being a well-versed editor with the current scenario of numerous industry verticals. He is one of the valuable assets to this publication. The Industry News Press has awarded him with a senior editors post based on his skillful performance to date.