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- US stocks rose Tuesday, continuing Monday’s rally, as investors were encouraged by signs that the coronavirus pandemic is slowing in major economies.
- New COVID-19 cases appear to be decelerating in the US, Spain, and Italy. On Monday, China reported no new deaths from the virus for the first time since the outbreak began.
- US airlines gained in early trading, as did cruise lines. Oil climbed on hopes that OPEC and its allies will meet later in the week to discuss production cuts.
- Read more on Business Insider.
US stocks rose Tuesday, continuing gains from a day earlier, as investors were encouraged by signs that the coronavirus pandemic is slowing in major economies.
New cases of COVID-19, the illness caused by the coronavirus, appear to have fallen from peaks in the US, Italy, and Spain, three countries with severe outbreaks. There are also positive signs in Asia: China on Monday reported no new deaths from the virus for the first time, and new cases in South Korea have slowed.
“The world has finally seen a glimpse of light at the end of this dark tunnel,” Hussein Sayed, the chief market strategist at FXTM, told Business Insider.
Here’s where major US indexes stood shortly after the 9:30 a.m. ET market open on Tuesday:
- S&P 500: 2,747.91, up 3.2%
- Dow Jones industrial average: 23,480.56, up 3.5% (801 points)
- Nasdaq composite: 8,120.37, up 2.6%
US airlines and cruise lines also gained in early trading. United Airlines jumped 14%, while American Airlines and Delta Air Lines also advanced. Royal Caribbean, Norwegian, and Carnival cruise lines all gained as much as 14%.
Meanwhile, oil prices edged higher on Tuesday on optimism that OPEC and its allies will meet later this week to discuss production cuts.
Still, uncertainty remains about the pace of recovery from the coronavirus-led economic slowdown. Sayed said he thinks that markets are repricing the worst-case scenario because of the virus outbreak and that investors moving into risk assets show that they believe a “V-shaped” recovery is coming.
“Attractive valuations, ‘fear of missing out,’ and extraordinary stimulus packages also exaggerate the upside moves in prices,” he said. “However, no one yet knows the exact damage this virus has already done to the global economy, corporate earnings, and what kind of exit strategies countries will follow in the weeks ahead.”