The US markets ended mostly higher on Tuesday as investors attributed the bullish trading in stocks to hopes that the Fed would ease policy if a global economic shock from the coronavirus made its way to US shores. Federal Reserve Chairman Jerome Powell said during testimony before the House Financial Services Committee that the central bank is closely monitoring the coronavirus outbreak but also highlighted the resilience of the US economy. In prepared remarks, Powell noted some of the uncertainties around trade have diminished following the signing of the phase one US-China trade deal but cautioned risks to the outlook remain. However, Powell pointed out that the US economy has recently appeared resilient to global headwinds, with economic activity increasing at a moderate pace over the second half of last year.
Besides, recent reports suggesting the rate of growth in coronavirus infections has slowed also generated optimism Chinese efforts to contain the outbreak are working. China’s National Health Commission said in its daily update that 108 deaths were reported in the previous 24 hours, bringing the total to 1,016 deaths in mainland China since the disease emerged in December. The number of new, confirmed cases fell to 2,478 from 3,062 a day earlier, bringing the total to 42,638 on the mainland, including some of whom have since recovered and been released from treatment.
Nasdaq added 10.55 points or 0.11 percent to 9,638.94 and S&P 500 was up by 5.66 points or 0.17 percent to 3,357.75, while Dow Jones Industrial Average lost 0.48 points to 29,276.34.
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