Stock market is overreacting to coronavirus outbreak, analysts say

The stock market slumped after the first case of coronavirus was confirmed in the U.S., but analysts don't expect the disease outbreak to have any long-term economic impact, reports CNBC.

On Jan. 27, the Dow Jones Industrial Average was down 1.8 percent coming off the news of more confirmed U.S. coronavirus cases over the weekend. Many investors said they believe investors are overreacting to coronavirus.

"People are under-appreciating how bad this is going to be in China, and over-appreciating how bad it is going to be in the U.S.," Chris Meekins, a healthcare policy analyst at Raymond James, told CNBC.

The stock market also fell in 2003 during the SARS outbreak, which began in China and infected more than 8,000 people globally, according to the CDC.

"If the outbreak follows the course of past ones this century, the global economy faces just a temporary stumble," Michael Gregory of BMO Capital Markets said in a Jan. 27 analyst note cited by CNBC.

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