US stocks plummet again as Trump fails to quell coronavirus fears

Stocks reflect declines on monitors as people work on the floor of the New York Stock Exchange on Thursday, 27 February, 2020 ((AP Photo/Craig Ruttle))

US stocks have fallen sharply again on Thursday morning, despite efforts by the Trump administration to calm fears over the impact of coronavirus on the economy.

The Dow Jones Industrial Average was down 900 points in early trading, more than 3 per cent.

Monday and Tuesday saw two of the largest points drops in the history of the Dow Jones.

If the market ends the day down more than 361 points, it will have officially entered correction territory, defined as a drop of 10 per cent from recent highs.

The market closed last week at 28,994. At 10.30am on Thursday it stood at 26,131.

Investor fears are being driven by the realisation of how much the virus is impacting the Chinese economy and global supply chains, as well as the intensity of outbreaks in Italy, Iran and South Korea.

Donald Trump held a press conference on Wednesday night in which he appointed vice president Mike Pence to lead the government's response.

Officials at the Centres for Disease Control and Prevention (CDC) have said it is a matter of when, not if, the US sees serious illnesses. The president continues to downplay the threat of a widespread outbreak.

Reuters reports that the International Monetary Fund is likely to downgrade its growth forecast as result of the fast-spreading virus.

“Clearly the virus is going to have an impact on growth,” IMF spokesman Gerry Rice told a regular briefing. He gave no specific details.

Mr Rice also said that he expected a decision soon on the impact of the coronavirus for the IMF and World Bank spring meetings in April, noting that a range of options were under consideration. Officials are considering scaling back the meetings or holding them by teleconference.

More to follow...