The stock market continues to be rattled by the coronavirus outbreak, and one investment adviser is warning that if the outbreak continues there will be a big impact on the global economy, according to Yahoo Finance.
The S&P 500, Nasdaq and Dow all traded below their 50-day moving averages on March 9, and only the Nasdaq is above its 200-day moving average.
"When it comes to the markets, we really don't care how bad the coronavirus is compared to other pandemics in history," Miller Tabak adviser Matt Maley told Yahoo.
Investors aren't keeping tabs on how the coronavirus outbreak compares to the SARS outbreak, H1N1 or Ebola, Mr. Maley said. Instead, people are concerned about human behavior.
"All that matters right now is that it is having a big impact on human behavior. That, in turn, is having a big impact on the global economy," Mr. Trabak said. "The longer it lasts, the worse it will get."
The coronavirus could send the U.S. into a recession, Goldman Sachs strategist David Kostin said in a note to its clients, "if the coronavirus contagion lasts for an extended period of time."
In the event of a U.S. recession, Mr. Kostin said he thinks S&P 500 earnings would dive 13 percent, and the index would drop 18 percent, according to the report.
Access the full report here.