Dow jumps 187 points after Monday’s sell-off

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U.S. stocks stabilized Tuesday after posting their worst loss in months a day earlier on fears over the coronavirus outbreak. 

The gains come as investors fretted over the potential impact the coronavirus could have on the global economy in recent trading sessions, particularly on industries including travel, tourism, restaurants and retail.

The death toll has risen to 106 in China and has sickened more than 4,500 people across the country. The virus has spread to a dozen countries. More than 70 cases have been confirmed outside of China, including five in the U.S. 

Some analysts say it’s still too early to tell how the virus could affect corporate profits.

“If prior episodes of health emergencies are any guide, and assuming the coronavirus will ultimately be contained within a timeframe similar to prior episodes, the negative impact on economic activity and markets is likely to prove to be temporary,” David Joy, chief market strategist at Ameriprise Financial, said in a note.

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Traders and financial professionals work ahead of the closing bell on the floor of the New York Stock Exchange (NYSE) on January 29, 2019, in New York City.

The Dow Jones industrial average rose 187.05 points, or 0.7%, to close at 28,722.85, after tumbling 454 points on Monday — its biggest drop since October. The Standard & Poor’s 500 rose 1% to end at 3,276.24, snapping two straight days of losses. The technology-heavy Nasdaq Composite added 1.4% to finish at 9,269.68.

Stronger-than-expected economic data helped boost investor sentiment Tuesday. Consumer confidence rose more than expected to a five-month high in January, the Conference Board said Tuesday, amid an unemployment rate that remains at a half-century low of 3.5%. The consumer confidence index rose to 131.6 this month from 126.5 in December.


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