Wall Street has worst week since 2008 as S&P 500 drops 11.5%

(AP) - Stocks sank again after another wild day, extending a rout that left the market with its worst week since October 2008.

Major indexes clawed back much of their intraday losses in the last 15 minutes.

Bond prices soared as investors sought safety, pushing yields to record lows.

The stock swoon is being driven by fear that the coronavirus outbreak will derail the global economy.

The Dow Jones Industrial Average lost 357 points, or 1.4%, to 25,409. It was down 1,085 points earlier.

The S&P 500 lost 0.8% and is now down 13% since hitting a record high just 10 days ago.

Some global key indexes also are closing out their worst week since the depths of the 2008 crisis.

Germany’s DAX skidded as much as 5% before paring losses Friday.

Tokyo and Shanghai closed 3.7% lower.

Investors had appeared confident governments were bringing the outbreak under control, but forecasters warned such optimism likely was premature.

Major companies are issuing profit warnings.

The outbreak has been shutting down industrial centers, emptying shops and crimping travel around the world. Hotels, eateries, shops and other businesses say they’re feeling the hurt and employees, in turn, say they’re worrying about paying their bills.

The list of countries hit by the illness has grown closer to 60 with Belarus, Lithuania, New Zealand, Nigeria, Azerbaijan and the Netherlands reporting their first cases.

Markets slide, auto show canceled as virus impact spreads

Concerns about the economic impact of the new coronavirus are intensifying, disrupting business events, production and travel.

On Friday, stock markets were down again, heading for their worst week since the height of the global financial crisis in 2008.

The Geneva auto show was canceled after Swiss authorities banned large public events.

There is a run on face masks, with many businesses selling out. And companies continue to report an expected hit to earnings.

British Airways’ parent companies was the latest to warn on a revenue drop, while Philippine Airlines said it was cutting 300 jobs.

Market corrections: scary but also, in some cases, necessary

After six days of being pounded by a virus-induced, global sell-off, US markets hit a milestone this week.

The S&P 500 has dropped more than 10% from the record highs set just over a week ago as a fast-spreading new virus raises the specter of damaged economies and tumbling sales for companies in the U.S., Asia, Europe and elsewhere.

The S&P just went through a correction. While that can be scary, particularly when a sell-off happens as fast as it did this week, corrections are fairly regular occurrences in the stock market.

A correction can be a healthy event, eliminating excesses that have built up after extended runs of market optimism.

China manufacturing plunges in February amid virus controls

A gauge of Chinese manufacturing plunged in February by an even wider margin than expected after efforts to contain a virus outbreak shut down much of the world’s second-largest economy.

The survey, coming as global stock markets fall on fears the virus will spread abroad, adds to mounting evidence of the vast cost of the disease that emerged in central China in December and its economic impact worldwide.

The official purchasing managers’ index fell to 35.7 from January’s 50 on a 100-point scale on which numbers below 50 indicate activity contracting.

A measure of imports plummeted, highlighting the shock waves spreading through China’s Asian neighbors and other suppliers of components and raw materials to its factories.

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