Update: 12:05 p.m. EST
Stocks turned higher by Monday noon, rebounding from earlier lows led by gains in tech stocks like Amazon (AMZN).
The Dow Jones Industrial Average gained 62.32 points to 29,164.83 while the S&P 500 rose 10.92 points to 3,338.63 and the Nasdaq Composite Index advanced 60.37 points to 9,580.89.
In Europe markets finished lower, as Britain’s FTSE-100 fell 0.27%, France’s CAC-40 slipped 0.23% and Germany’s DAX slumped 0.15%.
U.S. stocks opened lower on Monday as traders continued to assess the ongoing economic impact of the coronavirus
The Dow Jones Industrial Average dropped 28.5 points to 29,074.01 while the S&P 500 slipped 1.40 points to 3,326.31 and the Nasdaq Composite Index fell 8.56 points to 9,511.96.
Chinese officials said that as of Sunday night, the number of people infected with coronavirus surpassed 40,000 and 908 had died. On a cruise ship quarantined in Japan, 14 Americans tested positive for the virus
On Sunday, Tedros Adhanom Ghebreyesus, director-general of the World Health Organization, warned that nations outside of China have to prepare for the spread of coronavirus.
‘The detection of a small number of cases may indicate more widespread transmission in other countries; in short we may only be seeing the tip of the iceberg,” he said. “[The spread] appears to be slow now, but could accelerate. Containment remains our objective, but all countries must use the window of opportunity created by the containment strategy to prepare for the virus’s possible arrival.”
Tedros’ comments added to growing fears about the virus.
“This coronavirus seems to be going on for longer, is infecting more people and the hit to growth will be longer,” said Diana Mousina, an economist at AMP Capital Investors Ltd. “You won’t be able to recoup all of the negative impacts in the first quarter.”
In Germany, Chancellor Angela Merkel’s succession plan fell apart when her designated successor Annegret Kramp-Karrenbauer said she will quit the ruling Christian Democratic Union party.
In a shock, Sinn Fein, long linked to the Irish Republican Party, received the most votes in tight Ireland elections. Sinn Fein now has to form a coalition with other major parties.
Overnight in Asia, markets finished lower. China’s Shanghai Composite dropped 0.51%, while Hong Kong’s Hang Seng slipped 0.59%, and Japan’s Nikkei-225 fell 0.6%.
In Europe markets traded lower, as Britain’s FTSE-100 fell 0.42%, France’s CAC-40 slipped 0.58% and Germany’s DAX slumped 0.45%.
Crude oil futures dropped 0.87% at $49.88 per barrel and Brent crude fell 0.64% at $53.83. Gold futures climbed 0.28%.
The euro dipped 0.16% at $1.093 while the pound sterling gained 0.41% at $1.2942.