Wall Street falls on virus concerns; Amazon soars owing to jump in holiday sales
1 min read.Updated: 31 Jan 2020, 09:18 PM ISTReuters
Risk aversion rises as coronavirus spreads globally; Exxon, Chevron slide after earnings
Amazon surged 9.2% after the company trumped estimates for holiday-quarter results, putting it back in the $1 trillion market capitalization club
The S&P 500 and the Dow Jones Industrial Average slid on Friday, hit by worries over the impact of the coronavirus epidemic on global growth, while strong earnings from Amazon.com checked losses on the Nasdaq.
Shares of the online retailer surged 9.2% after the company trumped Wall Street's estimates for holiday-quarter results, putting it back in the $1 trillion market capitalization club.
Gains in Amazon helped the consumer discretionary index rise 2.2%, while most other major indexes were in the red, with energy stocks tumbling 2.4%.
Wall Street indexes are on course to end the week on a poor note as virus fears continue to grip financial markets, although corporate earnings have been largely positive so far.
The World Health Organization declared the epidemic a global emergency on Thursday after the fast-spreading virus killed more than 200 people in China and infected thousands globally.
Disruptions in supply chains and travel curbs are expected to weigh on China's economy, prompting economists to temper their growth expectations for the world's second-largest economy.
"SARS experience suggests equities, especially in Asia, will keep falling until coronavirus infections stabilize and cyclical sectors are most vulnerable," Citi's global equity strategist Robert Buckland wrote in a note.
Citi, however, asked investors to "buy the dip". "Any further drop in global equities would make forecast returns more attractive," Buckland wrote.