U.S. Stocks Start to Recover From Coronavirus Rout

Outbreaks of the virus outside China have sparked concerns among investors of global economic damage.

Traders work on the floor of the New York Stock Exchange on Wednesday.Credit…Lucas Jackson/Reuters

• Feb. 26, 2020Updated 11: 21 a.m. ET

Stocks on Wall Street rebounded on Wednesday, recovering from back-to-back losses this week that had wiped more than 6 percent off the S&P 500.

Investors have been contending with the potential for the coronavirus outbreak to disrupt global trade and slow growth, and stock prices around the globe have reflected concerns about the virus’s spread outside of China.

Wednesday’s recovery came after stocks in the United States fell 3 percent on Tuesday and suffered their worst one-day slide in two years the day before. Major markets in Europe were also higher after days of selling, though stocks in Asia mostly drifted lower on Wednesday.

The virus outbreak that began in China has now infected more than 80,000 people and killed more than 2,700 around the world. Authorities in Italy are struggling to contain an outbreak that is threatening to disrupt Europe’s fourth-largest economy. Greece and Brazil reported their first cases. Iran has seen dozens of deaths from the virus, with cases spreading across its borders throughout the Middle East. South Korea is working to manage the largest outbreak outside of China, with more than 1,200 reported cases.

As the virus spreads, economists warn the crisis could roil global supply chains and hamper economic growth. Concerned investors dumped stocks, seeking safer investments like government bonds, pushing prices up and yields down.

• Updated Feb. 26, 2020

  • How worried should I be?
    
    New outbreaks in Asia, Europe and the Middle East are renewing fears of a global pandemic. The Centers for Disease Control and Prevention warned this week that Americans should brace for the likelihood that the virus will spread to the United States.
  • How do I keep myself and others safe?
    
    Washing your hands frequently is the most important thing you can do, along with staying at home when you’re sick.
  • What if I’m traveling?
    
    The C.D.C. has warned older and at-risk travelers to avoid Japan, Italy and Iran. The agency also has advised against all non-essential travel to South Korea and China.
  • How can I prepare for a possible outbreak?
    
    Keep a 30-day supply of essential medicines. Get a flu shot. Have essential household items on hand. Have a support system in place for eldery family members.
  • What is a Coronavirus?
    
    It is a novel virus named for the crown-like spikes that protrude from its surface. The coronavirus can infect both animals and people, and can cause a range of respiratory illnesses from the common cold to more dangerous conditions like Severe Acute Respiratory Syndrome, or SARS.
  • Where has the virus spread?
    
    The virus, which originated in Wuhan, China, has sickened more than 80,000 people in at least 33 countries, including Italy, Iran and South Korea.
  • How contagious is the virus?
    
    According to preliminary research, it seems moderately infectious, similar to SARS, and is probably transmitted through sneezes, coughs and contaminated surfaces. Scientists have estimated that each infected person could spread it to somewhere between 1.5 and 3.5 people without effective containment measures.
  • Who is working to contain the virus?
    
    The World Health Organization officials have been working with officials in China, where growth has slowed. But this week, as confirmed cases spiked on two continents, experts warned that the world is not ready for a major outbreak.

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President Trump on Wednesday placed the blame for the turbulent markets on the media outlets CNN and MSNBC, which he said in a tweet were “doing everything possible” to make the virus outbreak look “as bad as possible, including panicking markets, if possible.” He added that the United States was “in great shape” and that he would hold a news conference on the coronavirus situation on Wednesday evening.

Tech stocks, which were among the worst hit by sell-offs this week as investors worried about impacts on supply chains, recovered losses. On Wednesday, Microsoft shares gained over 2.5 percent and Apple shares were up more than 3 percent. Facebook gained more than 1 percent and Netflix almost 5 percent.

Oil prices edged lower. West Texas intermediate, the American benchmark, dipped under $50 a barrel. Brent crude, the international benchmark, was under $55 a barrel at 12 p.m.

The yield on the 10-year Treasury note, which was up slightly on Wednesday morning, closed at a record low of 1.335 percent on Tuesday, a sign that investors expect growth in the United States to slow.

European markets, which fell more than 1 percent earlier on Wednesday, recovered through the day.

The DAX in Germany was flat while the FTSE 100 in Britain was slightly higher. In Asia, the Hang Seng in Hong Kong lost 0.7 percent and the Shanghai Composite Index dropped by 0.8 percent.

The Associated Press and Reuters contributed reporting.

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