Stocks rallied on Tuesday, building on solid gains from the previous session as the market recovers from a steep selloff that was sparked by worries over the coronavirus.
The Dow Jones Industrials shot higher 478.99 points, or 1.7%, to 28,878.70,
The S&P 500 gained 54.74 points, or 1.7%, at 3,303.66.
The NASDAQ hiked 180.37 points, or 2%, to 9,453.77.
Stocks that have been hit by fears of the coronavirus slowing the economy bounced on Tuesday. Apple jumped 3.1%. Nvidia and Micron rose more than 2.5% each.
Companies directly impacted by the coronavirus, including Carnival, which confirmed on Monday that a former cruise-line passenger tested positive for the virus, rose. Carnival added 2.4%. American and United were both up by more than 5%.
Tesla, meanwhile, powered the NASDAQ with a surge of more than 15% that lifted the stock above $900. That rally follows Tesla’s best day in six years. Billionaire investor Ron Baron, a longtime Tesla bull, said Tuesday that Tesla could see revenues of $1 trillion in 10 years.
Microsoft and Caterpillar both rose more than 3% to contribute to the gains. The S&P 500 tech sector surged 2.7%, led higher by Apple.
Alphabet beat earnings estimates but missing on revenues, with Google’s advertising business falling short. Alphabet’s stock fell nearly 3%.
Tuesday’s continued bounce comes after media reports said China’s central bank could cut its key lending rate as well as banks’ reserve requirement ratios in the coming weeks to support economic growth.
The report came a day after the People’s Bank of China unveiled liquidity injection measures to the tune of more than one trillion yuan. The PBOC also injected another 400 billion yuan in liquidity.
Prices for the 10-Year U.S. Treasury faltered badly raising yields to 1.60% closer to Monday’s 1.53%. Treasury prices and yields move in opposite directions.
Oil prices recovered 33 cents to $50.44 U.S. a barrel.
Gold prices plummeted $25.80 to $1,556.60 U.S. an ounce.
Market Comeback Picks Up Steam