Global stocks and equity futures fell sharply today, following a warning from the White House that Coronavirus deaths could exceed 200,000. The news, which is likely to send a shockwave through American markets today, is the latest major development in the ongoing health and financial crisis.

American investors took some confidence from a $2 trillion stimulus package last week, but a rising death toll could test market resilience.

Dire Warning for Americans

President Trump warned the nation on Tuesday that there would be a “rough two-week period ahead”. The White House is officially projecting a Coronavirus death toll of 240,000 in America, even with the current lockdowns, stay at home orders, and social distancing guidelines in place.

Officials warned that Americans will need to drastically change their behaviors to see figures come in below the projection. President Trump, after initially downplaying the threat of Coronavirus earlier this year, has now said that it is a “matter of life and death.”

Dr. Anthony Fauci, the U.S. government’s leading infectious disease expert, called the projection “sobering” and said that “We are continuing to see things go up.”

While the projection is a worst-case scenario for now, officials have said that the figure could be as low as 100,000 if containment methods are successful. Washington State and California are two examples where containment methods like lockdowns and stay at home orders were implemented early. These appear to have been successful in slowing the spread and flattening the curve.

Global Stocks Signal More Woes for American Markets

Stocks around the world were hit heavily during Wednesday trading, with investors fearful that America’s economy will struggle to cope with containment efforts and such a drastic loss of life.

The UK FTSE 100 Index fell by -3.22% on Wednesday. The Asia Dow was down -1.90%. The Nikkei 225 in Japan was down -4.50%.

American stocks are likely to follow this trend, as international markets often influence domestic confidence.

Where’s the Upside for Investors?

Unemployment and jobs data will come at the end of this week, allowing investors to gauge the financial damage of the Coronavirus so far. Stay at home orders are stifling the consumer-based American economy, and this could signal slow growth or even shrinkage for some publicly listed companies.

Stocks are at bargain prices today, trading below fair market value. However, the market likely hasn’t hit its bottom, so investors will need to manage portfolios carefully while avoiding emotional decision making. History shows us that an upside is inevitable, but it could be weeks or months before we see sustained positive movement in the markets.