By Yasin Ebrahim
Investing.com – The S&P rallied sharply Tuesday on easing fears about the new coronavirus' impact on global economy as China's aggressive measures to limit the economic fallout from the virus boosted sentiment.
The S&P 500 rose 2.3%, while the Nasdaq Composite gained 1.9% and the Dow Jones Industrial Average 1.6%.
For a second-straight day, China introduced stimulus measures to steady business lending and offset the economic impact from the coronavirus, which has killed more than 400 people.
Sentiment on risk was also supported by data showing that the coronavirus may not be as deadly as many feared.
The coronavirus death rate was 2.1%, lower than SARS' 9.6%, according to China’s National Health Commission.
Despite the efforts from China, Goldman Sachs estimated that the global gross domestic product growth this year could fall by 0.1-to-0.2% even if infections slows significantly in February and March.
"The near-term impact is quite large," Goldman’s chief economist Jan Hatzius said. "What happens to 2020 as a whole really depends on how quickly the episode is brought under control."
But Google-parent Alphabet (NASDAQ:GOOGL) proved an exception to rally, falling about 3%, after the tech giant reported a miss on revenue, led by weakness in its core advertising business.
Ralph Lauren (NYSE:RL) surged 12% after its topped quarterly results as price hikes for its winterwear collection boosted margins.
In the wake of easing coronavirus fears, oil prices rebounded after falling into bear-market territory a day earlier, pushing energy stocks higher.
Tesla (NASDAQ:TSLA), meanwhile, shrugged off a downgrade from New Street, rising 14% to take its gains for the year so far above 80%, underpinned by its bullish quarterly results released last week. Shares quickly raced past the $800 and are trading above $900.