On Tuesday, US equities posted gains, primarily driven by a recovery among technology stocks paired with a decline in oil prices. The Nasdaq Composite experienced an increase of approximately 1.5%, while the S&P 500 advanced by about 1%. The Dow Jones Industrial Average saw a modest uptick of roughly 0.3%.
Chinese stocks surged to their highest levels in two years during vigorous trading on Tuesday, following a strong rally as mainland markets reopened after a week-long hiatus, although Hong Kong shares fell as market enthusiasm over stimulus faded.
— Lorenzo Lamperti (@LorenzoLamperti) October 8, 2024
The notable rebound was led by Nvidia, which saw an additional 4% rise amidst persistent optimism surrounding artificial intelligence. Other tech behemoths, including Amazon and Alphabet, also closed the session in positive territory.
Stimulus Boost wanes | Chinese market rally fizzles
China’s CSI 300 index down 6% #China #StockMarket
— ET NOW (@ETNOWlive) October 9, 2024
As the situation in the Middle East eased somewhat, oil prices faced downward pressure, partly due to lackluster stimulus measures from China.
West Texas Intermediate declined by more than 4.5%, with Brent crude also dropping over 4.5%. Investors redirected their focus to monetary policy, wrestling with unclear prospects for interest rate reductions.
US Market Gains Driven by the Tech Sector
China stock market up 27% in 1 month! For how long this rally will sustain?
— ET NOW (@ETNOWlive) October 8, 2024
The President of the New York Fed noted that the Federal Reserve’s policies are “well positioned” to facilitate a “soft landing” for the economy. In other corporate updates, Trump Media & Technology Group’s stock surged another 13% on Tuesday, spurred by discussions regarding Vice President Kamala Harris’s recent media activities and an unexpected appearance by Elon Musk at Donald Trump’s rally, which bolstered the stock’s rise.
The earnings season is about to kick off this Friday, with several of the country’s largest banks expected to release their earnings reports. Wall Street is anticipating a 4.7% increase in earnings, marking the fifth consecutive quarter of growth, though it is the slowest annual growth rate since Q4 2023. Meanwhile, in China, stock market rallies paused on Tuesday due to underwhelming expectations surrounding Beijing’s stimulus initiatives.
Hong Kong’s Hang Seng Index experienced its most significant downturn since October 2008, although the Shanghai Composite still managed to achieve a 5% gain. Overall, the stock market benefited significantly from tech stocks, particularly Nvidia, even as oil prices declined and China’s anticipated economic stimulus did not meet investor optimism.
