RALEIGH, N.C. (WNCN) – Fears over the spread of coronavirus hit the New York Stock Exchange on Monday with vengeance – dropping the market 1,032 points.
“I think what’s moving the markets down today is the fear of the unknown,” said N.C. State economics professor Mike Walden. “We don’t know how fast this virus could spread, and we don’t know how many people could be impacted.”
Walden said over the years, he’s seen viruses impact the market but one thing remains the same.
“As soon as we can contain them, the impacts go away quickly,” said Walden.
However, as the coronavirus spreads out of China into the Korean peninsula and European markets, many traders are getting nervous.
“I’ve seen some traders say we might be looking at a 20-percent drop in the stock market,” said Walden.
Douglas Boneparth, president of Bone Fide Wealth, said his concern is with the supply change and how fragile that might be.
“In the short term this will continue to create volatility in the markets,” said Boneparth.
Walden called the next couple days “critical.”
“That 3 percent could turn into 10 percent. And 10 percent is a standard correction,” Walden said.
While it remains to be seen how quickly the market will rebound, the experts have a little short term advice.
“The economic fundamentals that drive the stock market are still good,” said Walden. “If this bothers you, turn off the media that you watch.”
More headlines from CBS17.com:
- Your pictures from central NC’s biggest snow of the season
- Should fewer Americans get a $1,400 stimulus check?
- Durham County sheriff requiring employees to get COVID-19 vaccine
- Former Wake County deputy arrested after hours-long standoff, sheriff’s office says
- No. 20 Hokies rebound from road loss to top Notre Dame 62-51