- The Wuhan coronavirus is no longer confined to mainland China. It is increasingly disrupting American tech companies on their home turf.
- Seattle is in panic mode as a highly-fatal coronavirus outbreak rages in King Country, Washington. This comes as new cases emerge in San Francisco and the wider bay area.
- Many American tech companies are located in Washington state. Expect the NASDAQ to lead the market to new lows as coronavirus incapacitates workers and disrupts supply chains.
The NASDAQ index dipped 279 points on Thursday to close at 8,739. This is the latest move in a week of highly-volatile trading as the market comes to terms with the expanding coronavirus crisis. Nasdaq futures point to a weaker open on Friday with prices down around 0.90% in early morning trading.
The coronavirus is spreading rapidly on America’s west coast where many of tech’s biggest names are located. Amazon (NASDAQ: AMZN), Microsoft (NASDAQ: MSFT), and Starbucks (NASDAQ: SBUX) are all headquartered in Washington state. These companies helped lead the NASDAQ down with declines of 2.62%, 2.51%, and 4.37% respectively.
The Pain is Just Beginning for the NASDAQ
The NASDAQ index is especially vulnerable to the coronavirus crisis. Many of its biggest components have extensive supply chains and operations in China — the epicenter of the coronavirus outbreak. As if that isn’t bad enough, the coronavirus has followed these companies to their home turf with a major disease outbreak cropping up in Washington State where many of them are headquartered.
So far the outbreak in Washington state is the most fatal in the country with 70 confirmed cases and 10 deaths according to data from the Department of Health. The United States now reports a total of 233 coronavirus cases, and almost every single fatality has occurred in Washington state.