Extinction event? Hardly, unless the bug is engineered to mutate faster than anything seen before so immunity never develops. Though it could definitely be a "correction" as Wall Street labels things. The birth rate can certainly adjust.

As for nearer-term economic effects, that also is happening and will continue for some time. Wall Street is perhaps over-reacting, as it often does, but until things settle into a new normal (might take a couple of years) the markets will be volatile, and we will pay for concentrating our industrial production in one part of the world.