Two "black swans" meet; S&P 500 market value has evaporated 5 trillion US dollars recently

On Monday, along with the plunge in oil prices, the global spread of coronavirus deepens its impact on the economy. In recent weeks, the S&P 500 Index has evaporated nearly $ 5 trillion.

US stocks were brutally washed-up on Monday, with all three major stock indexes fell more than 7%, and the Dow slumped more than 2,000 points a day. Saudi Arabia's price war has caused oil prices to plummet, making the global financial markets more volatile after the recent hit by the coronavirus outbreak, which continuous spread has increased the concerns about the global economic downturn.

There are three reasons for the stock market downturn.

First, there is still a lot of uncertainty about the spread of coronavirus in the United States, which has made people's panic.

Second, the drops in oil prices will also have an impact on the US shale oil industry, with FTSE plummeted in the lead.

The third is financial instability. To a certain extent, with the plunge of US stocks, the yield of treasury bonds has also fallen to historical lows, which will also have an impact on the financial industry.

On Monday, more than 3,500 shares in NYSE hit a 52-week low of, the largest size since 2008.

Since the S&P 500 reached a record high, the index has lost more than $ 5 trillion in value. The total market value of the top 10 companies in the S&P 500 index fell by more than $ 1.4 trillion. 

Since February 19, Microsoft (150.62, -10.95, -6.78%) has lost about $ 250 billion in market value, a size bigger than any other US company.

Alphabet (1215.56, -82.85, -6.38%) the parent companies of Apple and Google, lost more than $ 200 billion, while Amazon (1800.61, -100.48, -5.29%) (Amazon) lost $ 170 billion. 

The S&P 500 Energy Index plunged 18.2% to its lowest level since August 2004 as investors reacted to falling oil prices. This has caused the energy index to fall by almost 50% from its 52-week high, far worse than any other sector.

As 10-year US Treasury yields fell to record lows on Monday, the S&P 500 financial stock index tumbled 11%, down 27% from a record high last month. 

"Low oil prices will destroy oil inventories, the oil industry and shale oil producers, and record low yields on Treasury bonds will destroy banks. These stocks have dropped the most today," said Donald Sergin, chief market strategist at Newbridge Securities in New York.

The plunge in U.S. stocks has also affected the stock prices of highly anticipated companies when they listed on Wall Street last year. Companies including Peloton Interactive and Uber Technologies have suffered greater losses. Company profit that investors including Beyond Meat have favored has also been affected.