Wall Street falls as China virus reaches the U.S.

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Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., January 21, 2020. REUTERS/Brendan McDermid

NEW YORK (Reuters) – Wall Street lost ground on Tuesday, backing away from record highs as a viral outbreak from China found its way to U.S. shores and the International Monetary Fund (IMF) lowered its global economic growth forecast.

All three major U.S. stock averages fell following several days of record closing highs and their best one-week advance in months.

The indexes extended their losses after the Centers for Disease Control and Prevention confirmed the first U.S. case of the coronavirus, which has now killed six people in China.

“We’re seeing headline risk introduced to the market and any time there’s new uncertainties, we see more volatility and flight to quality and investors fleeing risk assets,” said Charlie Ripley, senior market strategist for Allianz Investment Management in Minneapolis.

“Today’s news around the coronavirus is a reminder that risks remain, and it’s something that investors will be paying attention to in the coming weeks and months,” Ripley added.

With the outbreak occurring just before the Chinese lunar new year, the news hit travel-related stocks the hardest.

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