Spread of the coronavirus in United States has had the financial markets going up and down for the previous two weeks and this has raised the questions about the risks which the virus are posing to the economy of the United States.
By this Saturday, there had been as many as 153,503 cases confirmed for the Coronavirus all over the world as per the reports. The United States has also seen the 2,488 cases and as many as 51 deaths. The Markets have been souring quickly as the count ramped up in the United States. On this Wednesday, the Dow jones has entered the bear market which is when this market has fallen by 20% from their most recent highs.
However the headlines on this stock market may not be relatable in comparison to the ones impacting the Americans every day. The airlines have been cancelling the flights together. Disney has closed their iconic amusement parks and the hotel revenues have been sinking amid the tourism being weak and the restaurants have been struggling at keeping their doors open as the people have been told to stay inside. The industries of hospitality, dining, amusement parks and airline have been seeing a total contribution of $1.2 trillion to United States economy or close to 5.5% of the GDP as per the data.
The country is deriving 70% of the economy from the consumers of United States and any impact on the industries may have the serious effects.
However, any pullback in the spending is not going to be devastating as the job losses. The industries are hiring 11% of the labor market in United States.