Dow soars more than 250 points to a record as investors shook off coronavirus worries
U.S. stocks surged to all-time highs on Wednesday as investors shook off worries over how the coronavirus would affect corporate profits and the global economy.
The Dow Jones Industrial Average ended 275.08 points higher, or 0.9 percent, at 29,551.42. The S&P 500 added 0.6 percent to 3,379.45 while the Nasdaq Composite rose 0.8 percent to end the day at 9,725.96.
UnitedHealth jumped more than 4 percent to lead the Dow higher. Nike, Apple, and Caterpillar all surged more than 2 percent. Tech and energy were the best-performing sectors in the S&P 500, inching up by more than 1 percent each.
“Investors showed resilience by pushing stocks back to all-time highs, especially in the US, anticipating a strong V-shaped recovery when this is over,” Eylem Senyuz, global macro strategist at SunTrust Advisory, said in a note sent to CNBC.
But “as the coronavirus continues to spread across China and the globe, much of its impact remains unknown.” Senyuz added.
Wynn Resorts and Las Vegas Sands, two stocks tied to coronavirus outbreak concerns because of their exposure to the Chinese market, each surge by more than 3 percent. Those gains followed an upgrade from a Bank of America (BoA) analyst who recommended buying the stock as coronavirus cases were “leveling out.”
Delta and American Airlines shares inched 1.4 percent and 2.1 percent higher, respectively.
U.S. Federal Reserve Chairman Jerome Powell on Tuesday testified before the House Financial Services Committee that the American economy is in a good place, yet the central bank is “closely monitoring” the potential global economic fallout from the coronavirus.
Powell testified again before the Senate Banking Committee on Wednesday, noting the central bank should have an idea of the coronavirus’ effect on the U.S. economy “fairly soon.”