Wall Street Faces Worst Day in Over a Decade.
Music by: Cabaret Nocturne – Dark Pop.
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Yesterday was Wall Street’s worst day in over a decade. The S&P 500, the stock market index, fell more than 7% and the luxury industry has been hit hard.
Steven Pearlstein for The Washington Post said “this is what panic selling looks like. When everyone wants to sell and almost nobody wants to buy”.
Europe was already on the brink of recession before the coronavirus outbreak. But now with Italy’s industrial areas in quarantine, public events and major trade shows cancelled, the stock market has plummeted.
And the fashion industry is seriously suffering the consequences.
On top of brands already cancelling shows, events and experiencing stock and manufacturing issues because of the virus, shares in luxury brands were hit hard yesterday.
LVMH, who own Celine, Louis Vuitton and more, saw stocks plummet by 5.72%. Kering, owner of Gucci, Balenciaga and more, also saw a staggering drop of 5.58%. Richemont, Prada, Capri Holdings, Tapestry and Hermes all also saw their stocks decline rapidly overnight yesterday.
And it’s not just fashion houses that are taking a hit. Media publication HYPEBEAST also saw their stocks fall dramatically and they’re still decreasing today.
Charles Dumas, chief executive of investment research firm, TS Lombard, said the virus “looks likely to cause a worldwide recession”.
If this is the case, how long will it take for the industry to recover?
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