The Wall Street’s massive sell-off overnight over the fears of a coronavirus pandemic will be a major trigger for the domestic indices today.
Fears of a pandemic escalated after the coronavirus spread to Spain and dozens of countries, from South Korea to Italy, accelerated emergency measures while Iran’s virus death toll rose to 16. Adding to recent fears was an alert from the US Centers for Disease Control and Prevention on Tuesday warning Americans to prepare for the spread of coronavirus in the United States.
The Dow and the S&P 500 tumbled 3 per cent on Tuesday in their fourth straight day of losses as investors struggled to gauge the economic impact. The Nasdaq Composite also dropped 2.77 per cent.
Today’s session might also see an increase in volatility ahead of the expiry of February series derivative contracts tomorrow.