The US economy was affected by a climate of fear

Despite relatively few cases in the US at the time, the US stock market decreased in value by $1.7 trillion in a two day period in late February 2020.^[1] This is not for any material reason. Instead, it is because of an overblown culture of panic that is surrounding the spread of the disease. This is consistent with documented patterns of human behaviour.^[2] Humans tend to overreact to risks that are out of the ordinary and that generate widespread fear, while under-reacting to more everyday risks that might be more likely. People are more likely to fear dying in a place crash than in a car accident. The market crashing is a reflection of this. Stocks and the economy do not exist in a vacuum. They are largely driven by human behaviour. The coronavirus is not impacting the economy - human emotion is.

[P1] Humans have a tendency to overreact in times of panic. [P2] This tendency extends to the economy. [P3] The economic downturn in the US economy is a reflection of this, rather than a long-term crisis.