What decline? US markets rebound to record gains

Traders on the floor of the New York Stock Exchange (Photo: PBS.org)

Brushing off yesterday’s virus-induced jitters, American stocks returned to record heights on Wednesday – despite persisting worries on the coronavirus’ impact on major economic activity worldwide.

Rising 1.5 per cent, Apple and several other technology stocks once again helped lead the market higher.

The iPhone maker nearly nullified losses from Tuesday, which was triggered by a warning that its revenue would fall short of forecasts due to the viral outbreak centred in China.

Similarly, markets around the world rallied as the number of new coronavirus cases in China fell for the first time since the outbreak on Wednesday. There are concerns over what possible setbacks the outbreak could pose for manufacturing, travel and other economic activity across Asia, but expectations are high that China will limit the economic damage through stimulus and other measures.

Favourable reports on the US economy further helped to stabilise yesterday’s market turbulence.

The S&P 500 was up 0.6%, as of 1:40 pm. Traders are of the view that if the index stays that high, it will surpass its record set last week.

Additionally, the Nasdaq composite was up 0.9%, while the Dow Jones Industrial Average rose 143 points, or 0.5%, to 29,375.

European indexes also joined in the gains, and the French CAC 40 climbed 0.9%. Germany’s DAX returned 0.8%, and the FTSE 100 jumped 1%.

In Asia, the Hang Seng in Hong Kong added 0.5%, Japan’s Nikkei 225 rose 0.9%, and South Korea’s Kospi inched up 0.1%. Stocks in Shanghai lost 0.3%.