Coronavirus: Wall Street closes with global markets suffering worst week since 2008 financial crisis

Market tumult comes as CDC warned of inevitable outbreak in US

A trader on the floor of the New York Stock Exchange on Friday (AP)

The coronavirus epidemic has led Wall Street and global markets to end their worst week since the 2008 financial crisis, with the Dow plunging 1,000 points on Friday before making a slight come back.

The economic free-fall throughout the week left traders panicked, and led the US Federal Reserve to issue a rare statement to reassure Americans.

On Friday, the Dow Jones industrial average dropped by 1,000 points in the morning, and swung wildly throughout the day. It ended up closing down 355 points, or 1.4 per cent.

Standard and Poor's 500 index, meanwhile dropped by 0.8 per cent, and the Nasdaq ended things flat after a rally.

The week ended with all three major US market indeces in correction, which is likely to heighten concern among investors that the slide will continue.

The Dow and S&P 500 both had their worst weeks since the 2008 financial crisis.

The losses in the stock market have led to calls from prominent investors for the Fed to cut interest rates, which could help to calm the markets.

Chairman Jerome Powell, meanwhile, did not say that the Fed would cut interest rates, but said in a statement that the financial regulator would take action if necessary.

"The fundamentals of the US economy remain strong," he said in a statement. "However, the coronavirus poses evolving risks to economic activity."

He continued: "The Fed is closely monitoring developments and their implications for the economic outlook. We will use our tools and act as appropriate to support the economy."

The stock market slide corresponded with a dire warning from US health officials at the Centres for Disease Control and Prevention, who indicated earlier in the week that it was a matter of when, not if, that the US would see community level spread of the coronavirus, which has largely impacted China and Asian countries so far even as the infected population in the US has risen.

Donald Trump has also announced an effort to address the issue, even as he has maintained that things were well under control. He indicated that he would consider whatever funding for the coronavirus response that Congress deems necessary, after originally asking for just $2.5 billion.