Tech leads rebound in stocks

Stocks closed broadly higher on Wall Street on Tuesday, reversing a big slice of the market’s losses from a sharp selloff the day before.

The rebound ended a five-day losing streak for the Dow Jones Industrial Average that was fueled largely by fears that the spread of a new virus in China could hamper global economic growth.

Investors placed their concerns about the outbreak’s potential economic impact on the back burner and snapped up stocks that were beaten down on Monday, particularly chipmakers and other technology companies. The sector notched Tuesday’s biggest gain.

Apple rose 2.8% and continued to climb in extended trading after it released quarterly results following the closing bell that topped analysts’ estimates. Two chipmakers, Intel and Nvidia, gained 2.5% and 3.2% respectively. Many chipmakers rely heavily on China for sales and supply chains.

“There are always a few bargain hunters out there who will step in and start buying almost immediately,” said Randy Frederick, vice president of trading and derivatives at Charles Schwab. “But I’m quite surprised that it’s been this quickly and that it has rebounded as much as it has.”

Banks and other financial companies also climbed, along with communications stocks. Utilities, real estate companies and household-goods makers notched the smallest gains as investors shifted less money into safe-play sectors.

Pfizer slid 5% after the biggest U.S. drugmaker reported disappointing fourth-quarter earnings.

Harley-davidson dropped 3% after reporting weak fourth-quarter earnings and revenue.