U.S. equity markets surged Tuesday pushing the Nasdaq Composite to a record and returning the Dow Jones Industrial Average to positive territory for the year.
The Dow added over 408 points or over 1.4 percent, while the Nasdaq Composite rose 2.1 percent and the S&P 500 1.5 percent.
The gains came as the result of the Democratic caucus in Iowa remained in question due to a technology glitch. President Trump will give his State of the Union address on Tuesday evening.
Ahead of his speech, Trump touted the market gains in a tweet.
Tesla had another stand out day, rising nearly 14 percent and crossing above the $900 per share level for the first time before settling at $887 and change. The automaker’s enterprise value zoomed past Ford’s for the first time hitting over $173 billion. It surpassed General Motors last month.
Meanwhile, the coronavirus outbreak continues to spread, with the latest numbers from Beijing indicating 425 deaths and more than 20,600 people sickened.
U.S. casino operators in Macao were in focus after the gaming capital of the world shuttered casinos for at least two weeks in an effort to prevent the coronavirus from spreading.
American Airlines suspended flights to Hong Kong through Feb. 20 and United Airlines moved up the suspension of flights by a day to Tuesday.
Elsewhere, Tesla shares crossed $900 level for the first time after billionaire investor Ron Baron told CNBC that the electric-vehicle maker’s revenue will reach $1 trillion in 10 years. Shares soared 19.9 percent on Monday, closing at a record-high $780.
On the earnings front, Google-parent Alphabet reported its slowest revenue growth in five years, and surprised Wall Street analysts by providing sales for its YouTube and cloud-computing units.
Ferrari reported a 13.1 percent drop in fourth-quarter profit but raised its 2020 outlook. The automaker sees full-year revenue of more than 4.1 billion euros, up from its previous forecast of more than 3.8 billion euros.
Royal Caribbean said its fourth-quarter profit fell 13.5 percent from a year ago to $273.1 million, missing estimates, amid disruptions from Hurricane Dorian. Revenue was better than expected.
Clorox reported mixed second-quarter results for the fiscal year 2020 and raised the lower end of its profit outlook for the rest of the year. The consumer-products maker now sees full-year earnings between $6.10 and $6.25 a share, up from $6.05 to $6.25.
Commodities were lower with gold down to $1,558 an ounce and West Texas Intermediate crude oil weaker by 1 percent to $49.60 a barrel after sliding into bear-market territory on Monday.
U.S. Treasurys were under pressure, running the yield on the 10-year note to 1.597 percent.
European markets were sharply higher with Britain’s FTSE up 1.6 percent while Germany’s DAX and France’s CAC both gained 1.8 percent.
Markets rallied across Asia. China’s Shanghai Composite gained 1.3 percent after tumbling 7.7 percent the prior session as traders returned to work following the Lunar New Year holiday. Elsewhere, Hong Kong’s Hang Seng jumped 1.2 percent and Japan’s Nikkei added 0.5 percent.
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