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WHO helps quiet worst-case scenario
The World Health Organization (WHO) declared the coronavirus a public health emergency and the market... rallied!?!

The positive price action might seem counter-intuitive at first blush, yet it makes sense when one also recognizes that the WHO didn't recommend restrictions on the movement of people and goods. Sure, it cautioned that countries should be on top of screening measures and restrictions might be advisable in specific circumstances, yet the WHO sounded more like the IMF in pointing out that restrictions on the movement of people and goods can have negative economic effects.

In any event, market participants liked the connotations of the WHO's perspective, as it seemingly helped reduce concerns that other countries, particularly large developed economies, might follow China's lead in also restricting the movement of people and goods to help contain the spread of the coronavirus.

In brief, then, the WHO helped take a worst-case scenario off the table for now, so a bit of a relief trade has developed that has pushed the indices higher.

Not surprisingly, airline stocks have made a noticeable reversal along with other travel-related shares, which has helped the broader market recoup all of today's losses.

The S&P 500, down 0.9% at its morning low, is now unchanged for the session.