US futures were now recovering from a bearish week last week, and stocks rose Wednesday, building on the week’s already substantial gains, as fears over the coronavirus outbreak ease.
The Dow Jones Industrial Average traded 355 points higher, or 1.2%. The S&P 500 gained 0.9%.
Stocks in the medical field also rose, with UnitedHealth regained 4% pushing the Dow higher. IBM’s shares, which rose for 2.8%, is also noteworthy. Energy, health care, and financials were up more than 1% each to lift the S&P 500.
Meanwhile, Nasdaq Composite pushed the Dow and S&P 500 down, trading 0.3% higher after rallying more than 1% earlier in the day. The disappointing Nasdaq performance on Wednesday is attributed to the massive drop in Tesla stock prices following its announcement that some deliveries will be delayed due to the closure of their Chinese gigafactory due to the coronavirus outbreak.
The delay in delivery specifically affected Tesla’s Model 3 vehicles, which started rolling out from their Shanghai Gigafactory to the Chinese market since early January.
The proposed delivery (of cars) in early February will be delayed,” Tao Lin, vice president at Tesla, announced on Chinese microblogging service Weibo, as translated by CNBC. “We will catch up on the production line once the outbreak situation gets better,” Tao Lin responds to a user question.