U.S. stocks stabilized Monday as investors assessed uncertainty over the deadly coronavirus outbreak in China.
The Dow Jones Industrial Average climbed 220 points, recouping some of its losses after tumbling more than 600 points Friday. The Standard & Poor’s 500 added 0.8%. The technology-heavy Nasdaq Composite rose 1.3%.
The gains came after stocks across mainland China plunged overnight as the country’s markets reopened following an extended Lunar New Year holiday. China’s benchmark Shanghai index tumbled nearly 8%, its worst day since August 2015.
Health authorities released updated figures of 361 deaths and more than 17,000 confirmed cases. The World Health Organization said the number of cases will keep growing because tests are pending on thousands of suspected cases. The majority of the cases and all but one death are in China.
The outbreak of the virus in China has prompted governments around the world to step up surveillance and quarantine requirements as airlines cancel hundreds of flights.
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“We continue to believe that the global government response to the coronavirus has been aggressive and should eventually halt or limit the spread of the disease,” Mark Haefele, chief investment officer at UBS Global Wealth Management, said in a note. “However, it is difficult to know how long it will be before the number of new daily cases begins to fall.”
Technology companies led U.S. stocks higher, with Microsoft and Intel rising 1.4% and 1.3%, respectively.
Health care companies were also among the biggest gainers. Gilead Sciences was a standout, gaining 4.5%, on reports that one of its drugs is being tested as a potential treatment for the new virus.
Bond prices fell sharply, sending yields higher. The yield on the 10-year Treasury rose to 1.56% from 1.51% late Friday.
Google parent Alphabet will report earnings later Monday, while Ford and Disney release results on Tuesday. General Motors and Merck will report financial results on Wednesday.
Contributing: Damian J. Troise, The Associated Press