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Financial Market Jitters, Global Trade And The Coronavirus

Tuesday, February 25, 2020 | Sacramento, CA
NIAID-RML via AP

This undated electron microscope image made available by the U.S. National Institutes of Health in February 2020 shows the Novel Coronavirus SARS-CoV-2.

NIAID-RML via AP

There are a lot of factors at work that affect financial markets, including a rapidly spreading virus. On Tuesday, the Dow fell more than 1,000 points, down more than 3.5 percent. It was the worst day for the Dow in two years. And it wasn’t only the Dow. All major stock indexes? were down more than 3 percent. 

The market’s jitters appear to be related to how the virus is spreading, with new infections in South Korea, Italy and Iran. The virus is now in 28 countries. One question for experts is whether COVID-19 will reach pandemic status. And, if it does, will the global economy slow down?

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