Reuters

Growing fears that the novel coronavirus may escalate into a global pandemic hammered stocks on Monday.

The flu-like illness known as COVID-19 has caused deaths in Iran, Italy, and South Korea in recent days.

In total it has infected more than 77,000 people, killed about 2,400, and spread to more than 25 countries.

"Any investors who thought they could park their investments in the US or Europe to shield them from coronavirus concerns will have to think twice," one analyst said.

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Global stocks dived Monday as investors braced for the novel coronavirus to become a global pandemic.

The virus, which causes a disease known as COVID-19, has infected more than 77,000 people, killed about 2,400, and spread to more than 25 countries. The vast majority of the deaths have been in mainland China, but Iran, Italy, and South Korea have all reported fatalities in recent days, sparking fears that coronavirus will spread across the world and hinder global growth.

"Any investors who thought they could park their investments in the US or Europe to shield them from coronavirus concerns will have to think twice," Jasper Lawler, the head of research at London Capital Group, said in a morning note.

Travel and leisure stocks were among the worst hit. In the US, American Airlines dropped 9%, Booking.com slid 7%, Expedia fell 6%, and Marriot slumped 5%. In the UK, easyJet plunged 16%, Tui dropped 10%, and British Airways-owner International Consolidated Airlines slumped 9%.

Here's the market roundup as of 10:50 a.m. EST:

US stocks have tumbled with the Dow Jones Industrial Average down 2.8%, the S&P 500 down 2.7%, and the Nasdaq dwn 3.2%.

European equities slumped, with Germany's DAX down 4%, Britain's FTSE 100 down 3.5%, Italy's FTSE MIB down 5.7%, and the Euro Stoxx 50 down 4%.

Asian indexes closed lower with China's Shanghai Composite down 0.3%, Hong Kong's Hang Seng down 1.8%, and South Korea's KOSPI down 3.7%.

Oil prices have tanked with West Texas Intermediate down 4.5% at $51 a barrel, and Brent crude down 4.9% a $55.10.

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