US stocks closed higher on Tuesday, led by a rebound in tech stocks and a pullback in oil prices. The Nasdaq Composite rose around 1.5%, while the S&P 500 stepped up about 1%. The Dow Jones Industrial Average edged up roughly 0.3%.
Chinese shares soared to two-year highs in frenzied trade on Tuesday, extending a blistering rally as mainland markets reopened after a week-long break, while Hong Kong shares slid as investors walked back some of the stimulus excitement.https://t.co/dUiz3EteOa
— Lorenzo Lamperti (@LorenzoLamperti) October 8, 2024
Chipmaker Nvidia led the bounce back, rising another 4% amid continued bullishness around artificial intelligence. Other tech giants like Amazon and Alphabet also finished the session in the green.
Stimulus Boost wanes | Chinese market rally fizzles
China's CSI 300 index down 6%#China #StockMarket pic.twitter.com/gxDKBDpmHO
— ET NOW (@ETNOWlive) October 9, 2024
As tensions in the Middle East somewhat cooled, oil prices came under pressure, partially due to disappointing stimulus measures from China.
West Texas Intermediate fell more than 4.5%, and Brent also slipped more than 4.5%. Investors also turned their attention to monetary policy, grappling with uncertain prospects for interest rate cuts.
Tech sector fuels US market boost
China stock market up 27% in 1 month! For how long this rally will sustain? Expert's takehttps://t.co/iTyshYVVF0
— ET NOW (@ETNOWlive) October 8, 2024
New York Fed President stated that Federal Reserve policy is “well positioned” to achieve a “soft landing” for the economy. In other corporate news, Trump Media & Technology Group stock extended gains by another 13% on Tuesday. Calls for evaluating Vice President Kamala Harris’s recent media appearances, along with a surprise cameo by Elon Musk at Donald Trump’s rally, supported the stock’s ascent.
The earnings reporting season is set to begin on Friday, with some of the nation’s largest banks expected to report earnings. Wall Street projects a 4.7% growth in earnings, marking the fifth straight quarter of growth yet the slowest year-over-year growth since Q4 2023. In China, stock market rallies hit a pause on Tuesday after Beijing’s stimulus plan underwhelmed investors.
Hong Kong’s Hang Seng Index had its worst day since October 2008, and the Shanghai Composite still eked out a 5% gain. Overall, the stock market saw a considerable lift from tech stocks, particularly Nvidia, while oil prices retreated, and China’s expected economic stimulus fell short of investor expectations.
