The U.S. S&P suffered its largest one-day decline this year. Is it related to the pneumonia epidemic?

Of course it is related.

The rise of stocks has always been closely related to the dynamics and general environment of the holding companies, and the S&P 500 Index is widely considered to be the only best indicator of the U.S. large-cap stock market. As we all know, the recent pneumonia epidemic has reached its most critical moment. One of the most wrong perceptions is that some people believe that the epidemic only affects domestic import and export trade and tourism.

What leads to this misunderstanding is probably that this group of people have not even learned mechanics well in junior high school. The so-called force is reciprocal. As a country with a large population and the top power in the world, our country has an annual number of overseas tourists. , the export of goods is also second to none in the world. In other words, for some small countries, the number of people traveling in our country every year almost supports all their tourism revenue. Now that the epidemic is highly tense, as the number of tourists gradually approaches zero, the revenue of these countries will naturally decline. Naturally, travel stocks will fall accordingly, with Wynn Resorts falling 3.1% and Las Vegas Sands falling 2.3%;

Of course, these are not the ones with the biggest impact. According to reliable data, American Airlines , United Airlines, and Delta Air Lines fell 4%, 3.5%, and 2.4% respectively; the impact on these was not that domestic tourists could not go out as we imagined, but because the second case of new coronavirus was confirmed by the U.S. Centers for Disease Control and Prevention. After the outbreak of viral pneumonia, even Americans no longer dare to travel at will.

It can be seen that the economic losses caused by the epidemic can almost be said to have indirectly caused the single-day decline of the US S&P. The Dow Jones Industrial Average fell below 29,000 points, and may be the only one that still maintains a growth trend. Yes, there is only the mask industry. Of course, as the epidemic continues to develop today, we are more willing to believe that after a short period of spread, we will usher in the full control of the epidemic and the emergence of a vaccine. When the epidemic is completely under control, I believe that both the US S&P and the domestic economy will have a major trend of bottoming out and rebounding.