Well, that was painful. The increasingly hazy risk outlook linked to the coronavirus outbreak inspired a 3.35% haircut in the US stock market (S&P 500). The tumble was certainly a bracing counterpoint to the idea that sunny optimism is the only game in town. But before we let recency bias flip to the opposite extreme, let’s review where we stand after yesterday’s smackdown.

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Forecasting the economic impact of coronavirus is mostly guessing: WSJ
It’s premature to rule out a global recession triggered by coronavirus: MW
Is black swan blowback from coronavirus stalking Trump’s re-election? Politico
Will US stocks bounce after Monday’s dramatic selloff? CNBC
Iran may become the main source for spreading coronavirus: NY Times
Italy appears to be Europe’s epicenter for coronavirus: Bloomberg
Deadly protests rock Delhi as Trump visits India: Guardian
Dallas Fed Mfg Index rises sharply in February: Dallas Fed
US economic trend strengthened in January: Chicago Fed