How the coronavirus outbreak has delivered a shock to stocks, bonds and other assets in January

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How the coronavirus outbreak has delivered a shock to stocks, bonds and other assets in January
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These charts show how the coronavirus has impacted some assets and sectors in January.

A monthlong bout of coronavirus has ravaged China, claiming hundreds of lives and sickening thousands but the Asian influenza also has infected the stock market and other assets, chilling bullish sentiment for the moment and stoking uncertainty at a period of lofty valuations.

Stocks get slammed Friday Dow skids 0.7% in January and falls beneath its 50-day moving average at 28,443.30, a short-term line it hasn’t closed below since October, according to Dow Jones Market Data. Moving averages are used by market technicians to help determine bullish and bearish momentum in an asset.

Oil is on the verge of a bear market Coronavirus could hurt demand for crude because China is among the biggest importers of the commodity, putting oil prices on the verge of a bear market. Entry into a bear market is defined by a price drop of at least 20% from a recent high. The S&P 500’s energy sector nears closing in a bear market The S&P 500 Energy sector XLE, -3.12% is on the brink of closing on Friday in bear-market territory. It would need to close at or below 405.8 and is currently at 404.1.

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