US stocks fell sharply again on Wednesday, with the Dow Jones Industrial Average index (DJIA) closing more than 1,400 points in the red as the New York Stock Exchange trading floor hosted yet another volatile session as a result of economic concerns brought on by the global COVID-19 coronavirus outbreak.
The DJIA index closed the day with a 1,464.94 point loss, while the S&P 500 fell by 140.85 points. The Nasdaq Composite dropped by 392.20 points. Wednesday’s closing figures follow an 1,100-plus-point rally made by stocks on Tuesday after traders experienced one of the worst losses since December 2008 on Monday.
Throughout the day’s trading, various companies experienced gains and falls, including exploration and production company Apache Corp., which saw its shares drop more than 18% on news of declining oil prices, CNBC reported.
Increased Oil Production Sends Prices Tumbling
Earlier in the day, Saudi Arabia revealed plans to increase its oil output by 1 million barrels per day (bpd), ramping up the total production capacity to 13 million bpd. Additionally, the United Arab Emirates’ Abu Dhabi National Oil Company indicated that it too would be kicking up its production to over 4 million bpd in April.
Both announcements later forced Brent crude, the global benchmark for oil prices, to drop by roughly 2.9% to $36.14 per barrel. The move by both countries follows that of the Organization of Petroleum Exporting Countries (OPEC) on Monday to cut oil prices in anticipation of a major decline in oil purchases due to the novel coronavirus outbreak.
Although it’s presently unclear just when Saudi officials expect to reach their new goal of an additional 1 million bpd, experts have suggested that the move could take more than just a few months to achieve.
Pandemic Declared as Global COVID-19 Cases Increase
Other firms such as hospitality company Hilton Worldwide, tech giant Apple and both Royal Caribbean Cruises and Norwegian Cruise Line saw their shares take quite the hit as the COVID-19 outbreak was declared a pandemic by the World Health Organization (WHO).
Hours before trading wrapped up for the day, WHO Director-General Dr. Tedros Adhanom Ghebreyesus told reporters at a conference that after having assessed the situation, officials concluded that the COVID-19 outbreak can officially be viewed as a pandemic.
“In the past two weeks the number of cases outside China has increased thirteenfold and the number of affected countries has tripled,” the director-general said. “In the days and weeks ahead, we expect to see the number of cases, the number of deaths and the number of affected countries to climb even higher.”
The latest figures noted by the Johns Hopkins Center for Systems Science and Engineering indicate that more than 120,000 COVID-19 cases have been confirmed, and that with more than 4,300 deaths have been documented.
In the US, at least 30 individuals have died after contracting the COVID-19 virus. Twenty-four of the deaths were recorded in Washington state.
Sourse: sputniknews.com
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