Wall Street Close: US stocks rise from the coronavirus sick bed, printing fresh closes
- Dow Jones Industrial Average DJIA put on about 175 points or 0.6% to close near 29,277
- S&P 500 added about 24 points or 0.7%, closing around 3,352.
- The Nasdaq Composite Index leapt more than 1.1%, adding about 108 points to close near 9,628.
US benchmarks shrugged off the coronavirus concerns and climbed on Monday, with both the S&P 500 and Nasdaq Composite posting a record finish, taking into account strong sets of corporate earnings instead.
The start of the week was light on data but that didn't prevent investors from buying in the face of adversity whereby the coronavirus remains a major threat to global growth.
The Dow Jones Industrial Average DJIA put on about 175 points or 0.6% to close near 29,277 while the S&P 500 added about 24 points or 0.7%, closing around 3,352. The Nasdaq Composite Index leapt more than 1.1%, adding about 108 points to close near 9,628.
China reports 908 deaths and about 40,000 cases of coronavirus. On Sunday alone, 97 people died, the highest daily death toll since the outbreak began. Almost 6,500 of the affected patients were in critical condition, authorities said Monday. China's deaths from the epidemic are continuing to rise and much of the country remained at a standstill with many working from home. New Chinese research says the virus can be transmitted by saliva, urine and stool, as well as the usual viral route of respiratory droplets. It generally takes three days from the time of infection for symptoms to manifest, and 15 percent of the infected contract severe pneumonia.
Looking ahead for the week, US data and the Federal Reserve will be taking the limelight away from the virus, if only momentarily. We will hear from chairman Jerome Powell in his Semi-Annual Testimony and we will have both Consumer Price Index and Retail Sales.
Jerome Powell's Semi-Annual Testimony expectations
"We expect a dovish tone, similar to in the January 29 press briefing. The policy is on hold for now, but with an easing bias, reflecting a new approach to inflation as well as lingering growth concerns. Officials appear to have adopted some form of average inflation targeting, even as the review continues. The Shelton and Waller nomination hearings will likely be dovish as well,"
analysts at TD Securities explained.