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Wall Street takes a breath after a heavy cough

The Dow Jones starts on a progression of 0.17% and narrowly passes the bar of 28,000 points.

The New York Stock Exchange opened higher on Tuesday, moving ahead after yesterday’s tumble amid mounting fears about the spread of the coronavirus around the world.

Around 2:55 p.m. GMT, its flagship index, the Dow Jones Industrial Average, rose 0.17% to 28,008.57 points.

The highly technological Nasdaq gained 0.27% to 9,246.19 points.

The broad S&P 500 Index was 0.07% higher at 3,228.25 points.

“The market is poised to rebound on Tuesday as investors continue to assess the potential global impact of the coronavirus on economic growth,” said analysts at Wells Fargo.

On Monday, the Dow Jones and the S&P 500 had their worst session in more than two years, abandoning respectively 3.56% and 3.35% at the close while the Nasdaq had recorded its heaviest loss since October 2018 by losing 3 , 71%.

Market participants had expressed concern over the increase in the number of cases identified in various countries, including South Korea, Iran and Italy.

The World Health Organization has warned of the risk of a “pandemic”, causing financial markets to fear lasting negative consequences for the world economy.

“It is likely that the uncertainty will be spread over several sessions with the idea that the results of companies will be affected this quarter and perhaps in the longer term,” warns JJ Kinahan, of TD Ameritrade, who believes that the indices could evolve according to the adjustments planned by the listed companies.

The airline United Airlines (-1.10%), for example, suspended Monday evening its financial forecasts for 2020, explaining that “the range of possible scenarios” linked to the new coronavirus was “too broad to currently set targets” .

The company is thus in the wake of several large companies that warned that the epidemic would affect their results, such as Apple, Procter & Gamble or Coca-Cola.

Analysts are starting to take these disturbances into account.

In a note released Tuesday, Needham analysts lowered Apple’s first quarter revenue forecast by 13% and second quarter by 7% from their previous estimates.

In the bond market, the 10-year rate on the US debt continued to fall, standing at 1.355% against 1.371% on Monday at the close.

The 30-year rate on US Treasuries was moving to an all-time low, at 1.821%.

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