BUSINESS

Global Stocks Blowout

The global stock market slid to its worst week since the depths of the financial crisis in 2008.

This crisis comes against fears that the coronavirus could become a pandemic and derail economic growth.

The S&P 500, with a midweek record high, slid 4.4 percent, its worst day since August 2011.

The index is down 12 percent since that peak, entering what is known as a correction — a drop of at least 10 percent that signals a more significant sell-off than a few days of pessimistic trading.

The downward slide continued Friday as Asian markets closed sharply lower and European stocks tumbled at the start of trading.

The widening scope of the health crisis threatens to overwhelm global supply chains, especially in China, the world’s second-largest economy after the United States.

In addition, the outbreak could dash consumer demand as people limit travel or stay home even without a government order to do so.

Barbara Green, Readers Bureau, Fellow

Edited by Jesus Chan

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