Wall Street Bounces After Virus-Driven Selloff

U.S. stocks attempted a recovery on Wednesday after a rocky start to the week that shaved off more than 6% from the main indexes on growth concerns stemming from a global spread of the coronavirus, Reuters informs.

Marquee companies including Apple, Microsoft and Amazon were some of the biggest boosts to the S&P 500, rising between 1.6% and 3%.

Ten of the 11 major S&P sectors were in the black, with technology leading the charge with a 2.4% gain. The energy sector dipped 0.2%.

“There has been pressure on some high quality names, particularly in sectors that might be hit the hardest by the wider spread of coronoavirus,” said Charlie Ripley, senior investment strategist, adding that investors are looking for some bargains.

Still, caution prevailed as the U.S. Centers for Disease Control and Prevention urged Americans to prepare for the virus to spread in the United States. President Donald Trump said he would hold a news conference on the coronavirus at 6 p.m. ET (2300 GMT).

The extent of economic hit remained unclear as the virus spread further in South Korea and Italy, while Greece and Brazil reported their first cases of the virus on Wednesday.

“There could certainly be more volatility in store and markets could again test their selloff low,” said Rick Swope, vice president of investor education at E*TRADE Financial Corp.

The main indexes have declined in the past four sessions and the Dow has lost more than 1,900 points in the last two days.

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