US stock market sharply higher as virus fears abate

U.S. stock index futures were sharply higher on Tuesday morning as fears ease over an economic fallout from the coronavirus outbreak.

At around 2:30 a.m. ET, Dow futures were up 178 points and indicated an implied positive open of more than 198 points, while futures on the S&P 500 and Nasdaq were also higher.

Markets look set to continue the recovery after Friday’s steep sell-off amid concerns over the fast-spreading virus. As of Monday night, the death toll had reached 425 with 20,438 confirmed cases in China.

Atlanta Federal Reserve Bank President Raphael Bostic on Monday said his outlook for the U.S. economy was unmoved by the virus.

Stateside, results from the Iowa Democratic caucus were delayed Monday night as the party revealed that a “reporting issue” had caused “inconsistencies” in the data.

Earnings remain high on the agenda, with Alphabet shares sliding after hours Monday after beating earnings estimates but missing on revenues, with Google’s advertising business falling short.

Meanwhile, Tesla’s stock jumped 19.9% to post its biggest single-day gain in six years after Argus Research raised its price target to $808 from $556, citing strong fourth-quarter financials.

ConocoPhillips, Sony, Ralph Lauren and Royal Caribbean are among those reporting before the bell on Tuesday while energy giant BP posted stronger-than-expected full-year net profit before the European open.

Chubb, Disney, Ford and Chipotle will report after trading hours on Tuesday.

U.S. Redbook data for February is due at 8:55 a.m. ET, while December factory orders are expected at 10:00 a.m. ET.