Stocks rose on Wednesday as investors tried to shake off concerns over how the coronavirus would impact corporate profits and the global economy.
The Dow Jones Industrial Average traded 204 points higher, or 0.7%, and hit a record. The S&P 500 advanced 0.4% to an all-time high while the Nasdaq Composite also gained 0.4%.
As of Tuesday night, China’s National Health Commission had reported 97 additional deaths with total confirmed cases passing 44,000. However, the pace of new reported cases appears to be slowing down as they hit their lowest levels since late January.
Federal Reserve Chairman Jerome Powell on Tuesday testified in front of the House Financial Services Committee that the American economy is in a good place, but that the central bank is “closely monitoring” the potential global economic fallout from the virus.
“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. But “as the coronavirus continues to spread across China and the globe, much of its impact remains unknown.”
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