The global equity weakness continued yesterday, with consecutive 3% drops for the S&P 500 Index for the first time since August 2015. It might be hard to believe, but exactly one week ago today the S&P 500 was making a new all-time high. What a difference seven days makes!

Yes, the uncertainty that that coronavirus outbreak has caused has sparked the weakness we’ve seen over the past week, but at times like these, it is important to remember that markets go both up and down. “The S&P 500 has pulled back more than 5% from the recent peak, which has many investors on edge,” said LPL Financial Senior Ma

News that the coronavirus—known as COVID-19—has spread to South Korea, Italy, Japan, and Iran, has led to massive selling around the globe, with many European markets closing down more than 4%. U.S. stock markets are selling off hard as well, with the S&P 500 Index down nearly 3% in early trading on Monday.

“Although the fear over the pandemic is real, and the potential slowdown in the global economy could hurt 2020 corporate profits, let’s not forget that big down days are part of what long-term investors have had to accept,” said LPL Financial Senior Market Strategist Ryan Detrick.

Corporate America impressed us this earnings season. Though S&P 500 Index companies have generated only 1–2% earnings growth compared with the year-ago quarter, we consider this an excellent result given the challenges companies faced in late 2019. The challenges have not let up in 2020, however, with significant disruptions for U.S. companies operating in China due to the coronavirus outbreak.

Strong Results Amid Stiff Headwinds

Companies have done an admirable job growing profits—considering several stiff headwinds that they’ve faced. Despite slowing global economic growth, weakness in capital investm

U.S. stocks fell during the holiday-shortened week as confirmed cases of coronavirus (COVID-19) continued to rise. The S&P 500 Index still set a fresh record high on Wednesday, partly due to China’s aggressive policy response, but pulled back Thursday and Friday to end the week lower. Earnings news from corporate America generally met expectations, while the Democratic presidential debate kept politics in focus. 

The major U.S. stock indexes all ended the week lower, with the Russell 2000 Index holding up relatively well. The defensive consumer staples, real estate, and utilities sectors outperformed, while the gro