Stocks partially reverse last week’s slide in early-morning trading
Both the Dow Jones Industrial Average and the Nasdaq have reversed course after a week of losses. The Dow was up 570.50 points to 25,979.86 and the Nasdaq was up 112.96 to 8680.33 near midday trading.
The two major bellwethers of investor sentiment had a rough week last week as the spread of the novel coronavirus, COVID-19, and the response from governments that it engendered cut into supply chains and corporate earnings. Over the weekend news from the United States regarding the disease wasn’t winsome, making the market moves stronger than they might otherwise appear.
Microsoft was one of several companies which issued guidance indicating that their financial results would be affected by the shutdown of Chinese manufacturers. Indeed, supply chains for industries from pharmaceuticals to technology are going to see production curtailed by a lack of basic components.
Equally as concerning for the markets was the spread of the virus beyond China to nearly every continent. Brazil, Italy, Nigeria, and the U.S. all reported new cases last week and the U.S. reported the first two deaths attributed to the illness.
Now, less than a week after the worst single-day drop by the Dow in its history, both markets are looking up. This could clear the air for the IPOs currently on the sidelines (DoorDash, Airbnb, Asana, and Procore, more here), and help generate more room for other companies to prep their own debuts.
However, a partial day’s gains is more stabilization than recovery. A welcome respite from a terrible week is good, but nothing like what is needed to bolster confidence. And, with more testing kits for COVID-19 going out around the country, the United States is far from out of the woods. But, hey, we covered the downs, so let’s talk about the recoveries, too.
Hell, even bitcoin is up 3% in the last 24 hours.