Global markets plummeted immediately after U.S. President Donald Trump said that the United States have suspended all travels from Europe, excluding Britain, in an attempt to limit the spread of the virus.
S&P 500 futures dropped by 3% with Japan’s Nikkei and Australia’s S&P/ASX 200 going lower than 4%.
The report of the virus spreading across the globe sent the Dow Jones index into a bearish trend for the first time since the 2008 financial crisis. Many investors have also expressed skepticism on governments and policymakers after they had failed to soothe sentiment with substantial fiscal stimulus.
Wall Street stocks sunk near 5% before the travel ban announced on Wednesday.
The U.S. travel restrictions will be implemented on Europe at Friday midnight. It was later clarified that the ban would not apply to U.K. travelers and cargo from Europe. Currently, the infected cases have reached up to 126,000 with the death-toll rising to more than 4,600 worldwide.