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Stocks rose on Tuesday following the market’s biggest selloff in more than three months as investors grapple with lingering fears over a possible coronavirus outbreak.
The Dow Jones Industrials leaped 230.58 points to 28,766.38, snapping a five-day losing streak. Apple and Goldman Sachs led the Dow’s gains, rising more than 1.8% each.
The S&P 500 regained 32.6 points, or 1%, at 3,276.23, led higher by the tech and financials sectors, both of which surged more than 1%. The two sectors were among the hardest hit as worries over the virus increased.
The NASDAQ hiked 130.37 points, or 1.4%, to 9,269.68
In China, where the virus originated from, the virus has killed more than 100 people while over 4,500 have been infected. In the U.S. — where some coronavirus cases have been confirmed — the State Department advised Americans to “reconsider travel to China due to the novel coronavirus.”
The Centers for Disease Control and Prevention also said travelers should avoid all nonessential travel to China.
Meanwhile, the corporate earnings season continued with 3M, Pfizer and Harley-Davidson releasing their quarterly numbers. Pfizer faltered 5.1%, while 3M faded 5.7%, on disappointing figures. Harley-Davidson’s earnings per share beat expectations, but a disappointing revenue figure helped send the stock down 3%.
Of the S&P 500 companies that have reported thus far, 67% have posted better-than-expected earnings. Apple is among the S&P 500 components set to report after Tuesday’s close.
On the data front, U.S. consumer confidence rose more than expected in January as sentiment around the labour market improved. The major averages hit their session highs following the data’s release.
Prices for the 10-Year U.S. Treasury sagged, raising yields to 1.65% from Monday’s 1.6%. Treasury prices and yields move in opposite directions.
Oil prices increased 54 cents to $53.58 U.S. a barrel.
Gold prices slid $9.20 to $1,568.20 U.S. an ounce.
