Stocks that have been hit by fears of the coronavirus slowing the economy bounced in premarket trading Tuesday. Apple jumped 1.7% and chipmakers rallied in early trading as well. Companies directly impacted by the coronavirus, including Carnival, which confirmed on Monday that a former cruise-line passenger tested positive for the virus, rose in the premarket. Carnival added 2%. Airlines bounced back as well.
The Dow fell 603 points, or 2.1% on Friday. On Monday, the average bounced back by 144 points, or 0.5%. Dow futures were up 1.1% on Tuesday.
Tuesday’s continued bounce comes after a Reuters report said China’s central bank could cut its key lending rate as well as banks’ reserve requirement ratios (RRRs) in the coming weeks to support economic growth. The report came a day after the People’s Bank of China unveiled liquidity injection measures to the tune of more than 1 trillion yuan.