The three Wall Street benchmarks are set to complete their worst week since the 2008 financial crisis broke out due to growing concerns about the coronavirus. The Dow Jones and S & P500 fell 4.4% on Thursday and the Nasdaq 4.6%, dragging them to the correction zone, which occurs when the index marks a drop of more than 10% compared to its last high. Before closing the markets, California, which records the first case of unknown origin in the United States, reported that health officials are controlling 8,400 people. The tension is also felt in Washington. The House of Representatives leader, Nancy Pelosi, criticized the appointment of Vice President Mike Pence, in charge of leading the crisis, accusing him of cutting the public health budget when he was governor of Indiana and his efforts to restrict access to abortion.
The Dow Jones lost almost 1,200 points during the day, accumulating this week a setback of more than 3,200 points. S & P500 has lost 12% since its last record reached on February 19, the fastest index drop recorded. Together with Nasdaq, they marked their highest percentage losses in one day since August 2011. The actions of technology and energy suffered the most significant falls. According to experts, the fear of investors has skyrocketed since cases were diagnosed in Italy, and now in California, and that the idea of stopping their spread is weakened worldwide.
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While the markets tremble, the political conflict intensifies. "I spoke with the vice president this morning ... and expressed his concern about his position in this position," Pelosi told a press conference about the coronavirus. After receiving harsh criticism for the management of the threat, President Donald Trump delegated Mike Pence, the vice president, in charge of leading the crisis. The appointment has been questioned by the Democrats because they do not see that they have the necessary tools. "It's about resources, it's also about the staff [in charge], it's also about respect for science, for evidence-based decision-making," Pelosi said. Critics brought to light when the vice president said the cigarette did not kill, the mishandling he had with the AIDS crisis that Indiana experienced when he was governor or his constant threats against the reproductive health centers of Planned Parenthood.
At the moment the economic effect of this crisis has affected only the markets, and not the real economy, however, it will mean a disbursement of federal funds. The US Government calculates to allocate a total of 2,500 million (2,300 million euros). However, the Senate Democratic leader, Chuck Schumer, announced on Wednesday the request for a plan to mobilize 8,500 million (7,800 million euros). Pelosi said this afternoon that they were "close" to reach a bipartisan agreement. “We don't know how much [money] we will need. Hopefully not so much more because [we believe that the prevention strategy] will work, but nevertheless, we have to be prepared to do what we have to do, "he said.
The Center for Disease Control and Prevention (CDC) confirmed on Wednesday the first case of unknown origin in northern California. The contagion of the woman from Solano County set off an alarm because she has not recently traveled abroad or had contact with a confirmed case. Governor Gavin Newsom did not want to reveal this Thursday with how many people he could have been in contact since he went to the hospital on February 15, but clarified that they are working hand in hand with the CDC to track down all those affected. The 8,400 cases they are controlling in the State must remain in their homes for the next two weeks. So far none have had symptoms of contracting the virus.
