Global stocks were feeling the pressure Monday as a spike in coronavirus infections in South Korea and Italy worried investors the spread of the virus outside of China would dent global economic growth.
The Dow Jones Industrial Average was falling 760 points, or 2.6%, to 28,234 while the Nasdaq declined 2.9% and the S&P 500 fell 2.5%.
Tech stocks were some of the hardest hit Dow components on Monday.
The tech sector has supply chains running throughout southeastern Asia, leading Apple to scrap its second-quarter revenue guidance earlier this month due to the ongoing impact of the coronavirus in China. The company also said that iPhone shortages would affect its near-term sales.
Walt Disney (DIS) - Get Report fell 4.2% to $133.20 ahead of the release of the company’s anticipated "Mulan" live action reboot. The company spent about $200 million making the movie with the bet being that the film would do well in the Chinese market, where the film is set.
“Under normal release circumstances, China could easily be ‘Mulan’s’ biggest market by a fair margin,” Disney CEO Bog Iger previously said. However, the spread of coronavirus puts that estimate in jeopardy.
Nike (NKE) - Get Report rounded out the bottom five. Earlier this month, the company said that about half of its stores have been closed due to the coronavirus and that is expects the outbreak to have a “material impact” on its China operations.
“This situation was not contemplated at the time we provided Q3 guidance during our Q2 fiscal year 2020 earnings call. Dynamics continue to evolve and accordingly we will provide an update on the operational and financial impacts on our Q3 earnings call,” Nike said at the time.