Impact of Covid-19 on sectoral stock prices: An event study based on US stock market

The impact of COVID-19 on stock prices different United States economic sectors is examined using event study methodology. Results revealed that the first confirmed case in US January 21, 2020 was underestimated by investors and did not disturb significantly. However, local transmission February 26, hit market post window. Due to this event, industries energy, financials, industrials, real estate utilities declined but observed price increases health care, information technology telecom services industries. First “stay at home” order issued California State USA March 19, 2020, a form lockdown which restricted public gathering, reduced value consumer staples, sectors. This brought positive changes discretionary, can help portfolio managers process asset selection risk minimization during these types pandemics. On other hand, findings assist policy makers designing strategies advance for financial stability as well minimizing negative consequences resulting from related potential crises future.