The major U.S. stocks – the Dow Jones, the S&P 500, and Nasdaq Composite rebounded after the few weeks’ downfalls caused by coronavirus outbreak. The Dow Jones Industrial Average skyrocketed at 187.05 points, or 0.7%, to 28,722.85 after a five-day low. It reached its high at more than 280 points during the day. The S&P 500 rose from 1% to 3,276.24. while Nasdaq Composite increased with 1.4% to 9,269.68. Apple and Goldman Sachs surged more than 1.8% each, leading the Dow higher.
Meanwhile, the tech and financial sectors boosted the S&P 500, gaining more than 1%. These two stocks were hit hardest after the virus spread along the Nasdaq. On Monday, they plunged to the lowest point since October. The S&P 500 experienced its first pullback in 74 sessions, while the Dow dropped by 450 points. Pfizer and 3M were among its worst performers, lowering their shares to 5.1% and 5.7%.
After China’s virus outbreak, traders moved on to the safe-haven stocks, such as the Japanese yen, using the risk-off tactics. As a result, the stock market went through one of the biggest sell-off during the last three months. Some futures collapsed, especially the Chinese ones. But fallen stocks began to rise again as the virus fear abated a little.
Terry Sandven, the chief equity strategist at U.S. Bank Wealth Management, noted that after yesterday’s sell-off, the stocks are rallying. According to him, present volatility is likely to be more of the norm than the exception over the next few weeks.
The Centers for Disease Control and Prevention issued that travelers should avoid all nonessential travel to China
The State Department had also advised to “reconsider travel to China due to the novel coronavirus.” President Donald Trump shared on Twitter that the U.S. is in “very close communication” with China. America is ready to help with the battle against the virus. However, some analysts think that China is in a better position to address the current crisis due to the country’s improvements to its national health care system.
