China’s stock market was closed for the last few days because of the Lunar New year celebrations. With the coronavirus outbreak, it resulted in the Chinese futures’ downfall.
China is almost in quarantine, as the other countries are evacuating their citizens and flights are suspended.
While tourism and airline companies suffered the most, Chinese yuan also lowered significantly. Investors were directing all their efforts towards the other safe-haven stocks, such as gold, the U.S. dollar, the Japanese yen, and so on.
It seems that the government’s action had a desirable effect, causing stocks to rebound. The Dow Jones Industrial Average rose to 144 points or 0.5%; the Nasdaq gained 1.3%, while the S&P 500 index increased by 0.7%. The small-cap Russell 2000 index also gained 1.1%.
Chinese retailing giant Alibaba hit the high, reaching 2.8%. And New Oriental Education, private education and test prep company, surged forward to 5.1%. This stock has risen by 10% since last summer.
What about Apple, Tesla, and Nike?
Apple lowered 0.3%, dropping surprisingly low, as experts noted. This stock lost 20 points, or about 6%, since rising to 327.85 high last Wednesday. However, the 98 Composite Rating stock is well above its 50-day moving average. And the analysts think that it will extend with 40% after a long run-up.
Tesla, a well-known electric car and battery maker, also surged with 19.9% after Argus Research increased its Tesla price target from 556 to 808. This stock rallied during the recent weeks, thanks to the EPS estimates, which is extremely high so far.
Meanwhile, Nike and Microsoft hit the high, with 3.1% and 2.4%, respectively. JPMorgan stated that Nike is a multiyear buying opportunity, causing the stock to rise.