The DOW reversed on Thursday as investors started selling on the bounce. Boeing and Disney were hit the hardest and traders on Wall Street are worried about the health of the average US customer.
Today, the DOW pointed to an implied drop of 700 points at Friday's open.
Markets have been up and down for weeks now since there is no certainty on what kind of damage the virus outbreak will cause.
Most of Wednesday's gain has been wiped out yesterday and the swings are liked to continue, especially as the number of infections keeps rising.
Asian stocks fall today
Major indexes dropped today. Japan, South Korea and Australia's benchmarks all fell more than 2%.
The Japanese stocks dropped more than 2.72% as the NIKKEI closed at 20,749.75.
In China, the SSE was down by about 1.21% and the S&P/ASX200 was down by 2.81%.
Vishnu Varathan at Mizuho Bank in Singapore: "One succumbs to the sheer fear of community spread, prospects of deep economic impact from a sharp drop off in demand for travel and seizures in supply-chains”.
“The other is a strain that thrives on hopes of stimulus; be it frantic central bank rate cuts, the lull of liquidity infusions or more targeted fiscal offsets to provide pain relief”.
Oil prices move
The day started with OPEC looking to secure backing from Russia, in regards to cut production by 1.5m barrels per day.
Prices were supported yesterday by a lower than expected rise in crude oil inventories in the US, but Reuters reported that Russia will not agree to cuts.
This caused a 3% slid in the price of Oil and Brent was down by $1.74, trading at $48.25 a barrel and WTI was trading at $44.34, down by $1.56.
Russia would only accept to extend existing cuts and is not ready to back OPEC for extra reductions in Oil output.
Financial Events to watch for today
13.30 Nonfarm Payrolls (Feb)