Stock Rally Fades as FDA Official Says Coronavirus Is on the Cusp of Pandemic
'There Is Significant Concern' of Worldwide Spread of the COVID-19 virus, Says Official M..
'There Is Significant Concern' of Worldwide Spread of the COVID-19 virus, Says Official
Major Wall Street indices clawed back their rallies after a hopeful morning rebound, while a top Food and Drug Administration (FDA) official said Wednesday that the coronavirus outbreak was on track to become a global pandemic.
“For all intents and purposes, I think its fair to say we are on the cusp of the pandemic,” said Peter Marks, head of the FDAs Center for Biologics Evaluation and Research, according to Bloomberg. “Is it definitely going to happen? No, but there is significant concern, as of overnight we have cases on six continents.”
U.S. stocks jumped after markets opened Wednesday while U.S. Treasury yields lifted off their record or near-record lows, in a sign that haven assets like government paper were giving ground to riskier equities, as investor anxiety seemed to ease after a two-day rout. But as of time of reporting, only the Nasdaq was holding on to gains, being up by 0.77 percent, while the S&P 500 and the Dow Jones were both back in the red.
The S&P 500 jumped around 1.7 percent up from Tuesdays close shortly after markets opened, but then collapsed through its 50-day moving average around noon. By 1:35 p.m. EST, the benchmark index had given up all the days gains and was down 0.02 percent on the day. An hour-and-a-half later, the S&P 500 was down 0.27 percent.
Supply Chain Disruption
Marks also told Bloomberg that the FDA was taking steps to prevent any potential supply chain disruption from having a material impact on the agencys ability to respond to the disease.
“From our standpoint at FDA, our goal is to maintain things as orderly as we can and try to maintain adequate amounts of supplies in the supply chain,” he told Bloomberg.
“Were dependent, for some of our medical products 90 percent or more, on imports,” he added.
During Wednesdays House Appropriations Subcommittee on the Presidents 2021 Budget Request, Health and Human Services Secretary Alex Azar was asked about U.S. dependence on drug imports from China amid supply chain disruption caused by efforts to contain the outbreak.
“I was alarmed to learn recently that almost 90 percent of the active ingredients used in pharmaceutical manufacturing originate in China. What should we be doing in the United States to ensure the safety of the American drug supply?” said Rep. Kay Granger (R-Texas.).
“This has brought to light the issue of the complete internationalization of the supply chain, not just for medical products but really across all of the economy,” Azar replied.
