Overview of COVID-19’s Impact on the Market
How the Novel Coronavirus Is Affecting Tech and Stocks
The novel coronavirus is affecting every aspect of modern life, and business is no exception. The tech industry and stock market have been hit hard, with factories and offices closing around the world and the Dow Jones industrial average plunging. At the start of the outbreak, tour guides, restaurateurs, airlines, and anyone in the travel/hospitality industry were the ones who suffered most, but since the spread of the novel Coronavirus, virtually no industry has been left unscarred.
At the moment, tech companies are leading the way with new and creative ways for continuing productivity while allowing employees to work from home. In fact, many companies have been surprising in their flexibility, and even more so, in their understanding that the “little man” will get hit the hardest. Many companies have stepped up and offered regular wages to hourly workers who have had their hours cut, while others are encouraging remote work for all employees, not just those who feel sick.
Here is a look at how the novel coronavirus has affected major global tech companies so far and how they have been dealing with it.
Corporate Policy for Employees During the Outbreak of COVID-19
When cases of Covid-19 were skyrocketing in Wuhan, the government put tens of millions of people in lockdown in an effort to staunch the progression. (It seems to have worked.) The lockdown meant that major tech companies with factories in Wuhan were unable to continue to operate. Apple, Samsung, Microsoft, Tesla, and Google all announced the temporary closing of their corporate offices, stores, and factories.
Apple
Currently, Apple’s retail stores around the world (except China, which already reopened) will be closed “until further notice”. The technology giant has been forced to seek alternate sources of supplies since Wuhan closed down, but the good news is that CEO Tim Cook gave the go-ahead for most global employees to work remotely.
Google’s offices remain closed in China, Hong Kong, and Taiwan. Visitors to its New York City and San Francisco offices’ employees have been asked to work from home until at least April 10, “if their job allows it”, and job interviews have been canceled. The silver lining here is that the company has created a COVID-19 fund to cover paid sick leave for all temporary staff who cannot come to work because they’re quarantined. Google will also continue to pay hourly workers who cannot do their jobs remotely.
Microsoft
Microsoft stores around the world are closed indefinitely, and its Build 2020 developer event, among others, has moved from in-person to online. Microsoft management has asked tens of thousands of employees in the US to work from home. Like Google, hourly workers will continue to be paid their regular wages even if their work hours are reduced.
Facebook has closed all of its offices and nearly all of its employees are currently working from home. The company has been giving free ads to the World Health Organization on its platform while ads promising cures for coronavirus have been banned. The company has already announced delays in the production of its Oculus VR headset.
Amazon, Twitter, IBM, Salesforce, and many more have all implemented a remote-work plan and are encouraging employees not to come to the office.
The Stock Market and Trump’s Stimulus Package
As with any global crisis, the stock market has been plunging. People have already termed the decline the “stock market crash of 2020.” The crash began in late February and has continued for the whole month. On March 9, the three Wall Street indices fell more than 7% and the day was termed Black Monday. Three days later, stocks in Europe and North America fell more than 9%, and the day was christened Black Thursday. On March 17, a day after President Trump announced plans for a massive stimulus plan, the Dow Jones industrial average jumped 1,048 points (5.2 percent) but fell 1,338 points (6.3 percent) the next day, nearly erasing all of its gains since Trump took office.
On March 27, Trump signed a $2 Trillion stimulus package to bail out individuals, small businesses, and companies. The package includes checks to be sent to many Americans based on income, as well as billions of dollars’ worth of aid to hospitals and local government who have been severely affected. The plan is unprecedented in size, but everyone is hoping that it will be able to prevent the current recession from turning into a full-blown depression.
Indeed, the novel coronavirus has made the economic outlook bleak, and there is no telling when the tides will turn. While a government bailout will certainly help, it is unclear how much damage will have been done. The outbreak of COVID-19 is unprecedented in its reach, but if there is one thing that tech companies have shown us is that in the face of crisis, there is room for creativity, tenacity, and even kindness.
