Dow rallies 500 points as China provides further support to financial markets

U.S. stocks rallied Tuesday as China provided further support to its financial markets to manage the economic impact of the coronavirus outbreak. 

The Dow Jones industrial average jumped 500 points, extending gains from the previous session. The Standard & Poor’s 500 added 1.7%. The technology-heavy Nasdaq Composite rose 1.9%.

Stocks in the U.S. received a boost as overseas markets stabilized overnight. The Shanghai Composite closed 1.3% higher, after plunging 8% a day earlier as the People’s Bank of China reportedly put another $57 billion in funds into the markets. That followed an injection of a net 150 billion yuan ($21 billion) on Monday.

“China is making serious efforts to cushion the economic blow there and will continue to do so,” John Vail, chief global strategist at Nikko Asset Management, said in a note. “But the effects of this virus will likely be long-felt, at least psychologically.”

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Markets in Europe also rose. Germany’s DAX gained 1.7% and France’s CAC 40 climbed 1.6%. Britain’s FTSE 100 added 1.5%.

In the U.S., investors snapped up tech stocks, which are often sensitive to China’s economic health because of ties to supply chains and sales. Apple rose 2.3% and chipmaker Nividia climbed 1.9%.

Banks and health care stocks also made big gains. Citigroup rose 2.2% and UnitedHealth Group climbed 3%.