Posted in: Market News
Published:
February 27, 2020 4:51 AM UTC

Dow Futures Collapse as Trump Fails to Calm Coronavirus Alarm

Stock market futures decline as investors ignore Trump's call for calm amid the growing wuhan coronavirus crisis.

  • Dow Futures are down despite Trump’s call for calm in the markets.
  • As the presidents remarks become increasingly divorced from reality, investors seem to be ignoring his commentary.
  • Is Covid-19 the needle that pops Trump’s massive stock market rally?

U.S Markets may crater when trading opens on Thursday as the United States confirms its first case of coronavirus with no direct link to China. The disease, which is now spreading rapidly around the globe, has infected over 82,000 people and killed 2,800.

Dow futures are down 1.01%. S&P and NASDAQ futures are also down 1.04% and 1.04% respectively as investors become increasingly skeptical that the authorities have the situation under control.

Trump is massively downplaying the coronavirus | Credit: REUTERS/Kevin Lamarque

A Pandemic May be Inevitable

The Wuhan coronavirus, also known as Covid-19, is no longer confined to China. The disease has established footholds all over Asia, the Middle East, and Europe. While the World Health Organization has so far refrained from calling the situation a global pandemic, many analysts believe that uncontrollable spread is inevitable.

According to Nancy Messonnier, director of the CDC’s National Center for Immunization and Respiratory Diseases, it is only a matter of time before coronavirus begins community spread in the United States.

She states the following:

We expect we will see community spread in this country. It’s more of a question of exactly when this will happen.

She warns Americans to prepare for the inevitable.

We are asking the American public to work with us to prepare for the expectation that this is going to be bad. Now is the time for businesses, hospitals, communities, schools and everyday people to begin preparing as well.

Trump Won’t be Able to Calm the Markets

As President Trump continues to call for calm in the market, his credibility may be taking a hit as the situation continues to worsen. Market participants may simply ignore his advice going forward.

The desperate president lashes out at the media for reporting the truth about the worsening situation.

Trump lashes out at the media for reporting the news. Source: twitter.com

But people aren’t having it. And the drop in Dow futures reflects the growing skepticism in the market. Take a look at some of the comments left under the president’s Tweet

Twitter user Christopher responds:

Probably the most irresponsible tweet Trump’s ever written. #CoronaVirus isn’t about making him look bad. It’s to be taken seriously as a worldwide threat. Lives are at risk & Trump’s trying to convince Americans it’s about ratings.

Twitter user Wickster writes:

The Coronavirus is turning into a global pandemic and the POTUS is downplaying it because he’s worried how he’ll look if the stock market continues to fall. That right there tells you everything you need to know about trump.

The Bull Run Maybe on its Last Legs

With stocks soaring to such unprecedented highs. A large correction may be healthy for the market. Source Ycharts.com

Wuhan coronavirus may be the needle that pricks Trump’s historic stock market rally.

With an election right around the corner, that’s the last thing Trump wants. But despite his increasingly desperate rhetoric, the U.S president may be unable to stop the inevitable. Expect a significant dip on Thursday as the situation continues to slip out of control.

This article was edited by Samburaj Das.

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Last modified: February 27, 2020 7:25 AM UTC

William Ebbs @ebbs_william

As a writer with over five years of experience, William Ebbs has contributed to CCN, The Motley Fool, and other wonderful clients. He has earned millions of page views with his hard-hitting, opinionated work. He focuses on financial markets and entertainment. When Will isn't writing, he enjoys strategy gaming, world travel, and researching for his next article. William Ebbs is based in the United States of America and can be reached at qzh8778@outlook.com

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