U.S. stocks stabilized Tuesday after Wall Street suffered its worst loss in two years a day earlier on concerns the coronavirus outbreak would threaten to weigh on global growth.
The Dow Jones Industrial Average climbed 55 points on Tuesday, after tumbling more than 1,000 points on Monday. The Standard & Poor’s 500 edged up 0.2% after posting its worst drop since February 2018. The technology-heavy Nasdaq Composite rose 0.3% following its biggest loss since December 2018.
A growing number of companies are forecasting their profits will suffer from disruptions caused by efforts to contain the virus, which has infected more than 80,000 people worldwide and killed nearly 2,700, most of them in China.
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News of clusters of new cases of the new coronavirus are rattling markets as they emerge, unleashing waves of volatility.
“During past events of this nature, we’ve seen a relatively quick recovery, but markets continue to grapple with the uncertainty surrounding the coronavirus and timing around the peak of its widespread harm to both human life and the economy,” Charlie Ripley, senior investment strategist at Allianz Investment Management, says in a note.
China’s economy has been hit hardest by the viral outbreak, as businesses and factories sit idle and people remain home-bound because the government has severely restricted travel and imposed strict quarantine measures to stop the virus from spreading.
Economists have cut growth estimates for the Chinese economy and beyond given the ripple effects being felt all around the world, as China is both a major importer of goods and a source of parts for intricate supply chains.
The Chinese government has promised tax cuts and other aid but economists say it is likely to be at least mid-March before automakers and other companies return to full production.
Benchmark U.S. crude oil lost 7 cents to $51.36 per barrel in electronic trading on the New York Mercantile Exchange. It fell $1.95 to settle at $51.43 a barrel on Monday.
Gold retreated as shares steadied, losing $23.90 to $1,652.70 an ounce.
The dollar rose to 110.42 Japanese yen from 110.68 yen on Monday. The euro weakened to $1.0844 from $1.0853.
In Europe, Germany’s DAX lost 0.3% and the CAC 40 in Paris fell 0.5%. In Britain, the FTSE 100 dipped 0.4%. Shares in Asia retreated, with the Nikkei 225 index losing 3.3%, after markets reopened from a holiday on Monday. The Shanghai Composite index shed 0.6%.
The Associated Press contributed to this article.