Wall Street rebounds from virus fears

U.S. stocks rallied on Monday, helped by gains in heavyweight technology shares and surprise strength in U.S. manufacturing activity, following a sharp selloff last week sparked by concerns about fallout from a virus out of China.

Yahaira Jacquez reports.

Wall Street bounced back on Monday after suffering a selloff last week.

All three major U.S. indices advanced on the first trading day of the month, despite cases from the coronavirus continuing to rise, and countries taking extraordinary measures to contain the outbreak Jim Awad of Clearstead Advisors thinks the impact will be short-lived.

(SOUNDBITE) (English) CLEARSTEAD ADVISORS, SENIOR MANAGING DIRECTOR, JIM AWAD, SAYING: "When you look at what's going on with the virus, it is going to slow world growth, dampen demand, disrupt supply chains and be disruptive.

On the other hand, interest rates have come down dramatically worldwide in reaction to that, which is very stimulative to the world economies and China is injecting a lot of stimulus into their economies.

Whenever we get through this period, there will be pent up demand so hopefully by the end of the year, you will make it up." Technology shares gave the market its biggest boost.

Microsoft rose - lifting the S&P 500 technology sector more than 1 percent.

Meanwhile, Tesla shares soared nearly 20 percent in the session, after investment firm Ark Invest said the electric carmaker's shares would rise more than ten-fold by 2024.

Its recent rally has pummeled investors betting against the company.

Nearly $16 billion worth of Tesla's shares are currently short sold, making it the most shorted company on Wall Street.

Meanwhile Nike shares climbed too, after JP Morgan added the stock to its focus list.