Stocks bounce back on Monday despite coronavirus scare.
The Dow and broader U.S. stock market rallied on Monday, as volatility fell, signaling that investors weren’t too concerned about the rapid spread of coronavirus.
All of Wall Street’s major indices reported gains in the first session of the week. The Dow Jones Industrial Average (DIA) rose 174.54 points, or 0.6%, to 29,277.05. The index came within 140 points of a new all-time high.
The large-cap S&P 500 Index (SPY) advanced 0.7% to close at 3,352.12. Eight of 11 primary sectors reported gains, with information technology and consumer discretionary companies leading the pack. Real estate companies also outperformed the benchmark.
On the opposite side of the ledger, energy stocks declined sharply as oil prices approached 13-month lows.
Meanwhile, the technology-focused Nasdaq Composite Index (QQQ) jumped 1.1% to 9,628.39.
A measure of 30-day volatility known as the CBOE VIX (VXX) backtracked slightly on Monday, signaling calm in the financial markets. The so-called ‘investor fear index’ dropped 0.9% to 15.33 on a scale of 1-100 where 20 represents the historic average.
Equity markets rallied on news of better than expected U.S. corporate earnings. Restaurant Brands International, Allergan, HP Inc. and Slack Technologies all rose on upbeat earnings reports.
On the whole, corporate earnings are headed for their fourth straight quarter of year-over-year declines. That marks the longest earnings recession in around four years.
There were no major U.S. data releases Monday. Later this week, the government will report on consumer prices, retail sales and industrial production.
The Final Word: Coronavirus now has roughly 41,000 confirmed case. Among them, there are 910 deaths, mostly in China.