Wall Street close: US benchmarks bleedout as coronavirus spread alarms investors

• DJIA, lost some 130 points, or 0.4%, near 29,219. 
• The S&P 500 SPX, -0.38% lost around 13 points, or 0.4%, to close near 3,373.
• Nasdaq Composite dropped around 66 points, or 0.7%, finishing near 9,751.

Despite upbeat data from the nation, US benchmarks were ending the day lower on Thursday, capping the S&P 500 and Nasdaq Composite from their record finishes in the prior sessions. The coronavirus is indeed a fickle theme in markets making for hot and cold sentiment regarding the severity of the situation as investors weigh the likely negative ramifications for the global economy. 

At least 114 new deaths from the coronavirus outbreak were reported on Thursday, bringing the death toll to 2,118 in China and China's National Health Commission also reported 394 new confirmed cases. However, there are significantly lower than the 1,749 infections announced nationwide the previous day which now make for a total of 74,576 victims are now infected. Despite the People's Bank of China foreseen efforts to add stimulus to the economy, the Wall Street investor prefers to err on the side of caution.

Subsequently, the Dow Jones Industrial Average, DJIA, lost 388 points at its session low, rounding off the day some -130 points, or 0.4%, near 29,219. The S&P 500 SPX, -0.38% lost around 13 points, or 0.4%, to close near 3,373, while the Nasdaq Composite dropped around 66 points, or 0.7%, finishing near 9,751.

US data continues to impress

The Phili Fed spectacularly beat estimates with the index rising 19.7 points to 36.7, just below its record high of 39.7 in Feb 2017.

"With the exception of employment, all sub-categories rose. Regional manufacturing surveys for February are pointing to a very sharp snap-back. Now is not the time, but at some point if the momentum in US data continues there must be a question about whether the Fed’s mid-cycle adjustment will need to be unwound," analysts at ANZ Bank argued.

"The strength in the data follows the much more settled trade environment with China and the completion of the USMCA trade deal. So far, there is no evidence of disruption to output from COVID-19, but that may take time to bite. The January leading indicator rose 0.8% m/m to 112.1, the biggest monthly gain since October 2017 and a new record high for the index which aims to provide an estimate of economic health six months ahead."

DJIA levels