Coronavirus fears are subsiding and that is great news for U.S. equities. Stocks were down last Friday amid peak concerns of stemming from coronavirus, but as we have started to gain a grasp on the spread and treatment of the virus, fears are fading, and the markets are back up. Dow Jones futures, S&P 500 futures, and Nasdaq futures all rallied Monday, and are up again so far this morning. The Dow Jones rose 1.3%, S&P 500 1.2%, and the Nasdaq rose 1.3%. The Nasdaq rising despite the fall of Google stock may be the most impressive feat of the three and an example of just how well the markets are performing thus far today.
In Wuhan, China, the epicenter of the coronavirus outbreak, a makeshift hospital was constructed in a mere 10-days in order to combat this outbreak. So far so good, as China reported 3,235 new cases on Monday, which I know sounds like a lot, but it actually shows a slowing in the percentage of people being infected. We’ll keep an eye on China and the progression of the virus as it seems to be directly tied into the success of the U.S. stock market.