Companies with stocks that are profoundly affected by a sudden drop last week following the intensifying fear over the Chinese coronavirus outbreak are expected to continue to bounce back, Tuesday. As capital markets rallied back on Monday after a steep dive last week, companies like Apple, Carnival, and airlines are expected to continue with their recovery.
Around 7:27 a.m. ET, Dow Jones Industrial Average futures were up by 309 points and indicated a gain of 329 points at the open. S&P 500 futures were up 1.1%, and Nasdaq 100 futures were up by 1.3%.
Together with the positive weekly outlook of capital markets, Apple, whose stocks fell following its announcement that it will close all of its Chinese stores last week, is now on its recovery track, bouncing back in premarket trading. Apple jumped 1.7% in early trading.
Similarly, after its stocks fell following the death of a passenger who tested positive on the virus, the cruise line, Carnival, also rose by 2% on Monday.
The Dow has dropped 655.08 points on Friday, or 2.3%, to 28,204.36, while the S&P 500 has fallen 1.8% to 3222.31. The Nasdaq Composite is off 1.8% at 9131.64.
Fears over the coronavirus outbreak
The novel coronavirus, a strain of virus similar to SARS and MERS, and originated in Wuhan, China, has a total confirmed infection rate of more than 20,000 and hundreds of fatalities. The outbreak of the new strain of the virus has also been officially recognized by the World Health Organization (WHO) as a global emergency following its spread to nearby Asian countries such as Hong Kong, Japan, Thailand, and the Philippines. Confirmed cases have also been charted in the Western world, including the United States, the United Kingdom, and Australia.
Analysts have since been vocal on their opinion that the coronavirus outbreak will eventually become one of the biggest market threats in today’s time.
“The coronavirus is the No. 1 threat to financial markets currently as global investors are becoming jittery on the uncertainty,” said Nigel Green, the founder of the investment group deVere Group this week.
“This is a worrying and serious situation, and investors must be vigilant,” he added.
