Music Banter - The Wow I Can't Believe That News Story Thread

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Hong Kong/London(CNN Business) Stock markets are falling around the world after the number of coronavirus cases surged in Italy and South Korea, putting two more major economies at risk from a virus that has already caused widespread disruption in China.

The Dow (INDU) plunged 1,016 points, or 3.5%, in the early afternoon on Monday.

The index is on track for its worst day in just over two years, when it closed down more than 1,000 points twice within a week as inflation fears gripped Wall Street. On February 5 and again on February 8, 2018, the Dow's percentage drop was more than 4% on both days.

Since the index is higher now, on a percentage basis Monday's selloff isn't as dramatic as other drops in the Dow's history.

The S&P 500 (SPX) and the Nasdaq Composite (COMP) also fell sharply at the start of the trading day in New York. The S&P was down 3.5%, while the Nasdaqdropped nearly 4% in the early afternoon. The VIX (VIX), a measure of market volatility, shot up 42%.

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A growing number of companies are warning that the coronavirus will prevent them from meeting sales or profit targets for the first three months of the year. Reduced demand for goods and services, and factory closures in China, are also expected to knock the global economy and weigh on trade at a time when Japan and Germany are already teetering on the brink of recession.

The stock market reaction to the outbreak had so far been rather muted, and US stocks have notched a string of record highs. But the spike in the number of cases in Italy and South Korea, the world's eighth and twelfth largest economies, raises fears of a pandemic and ups the stakes for businesses and investors.

The World Health Organization is preparing for a potential pandemic, said WHO Executive Director Mike Ryan.

Dow plunges 1,000 points as coronavirus cases surge in South Korea and Italy