Wall Street rises in response to China’s economic stimulus measures.

Chinese companies saw gains in line with the positive performance of their domestic maket.

Written by: Ignacio Teson • Tuesday, September 24, 2024 • 1 min read

• Last updated: Tuesday, September 24, 2024

The session was marked by the release of weak consumer confidence data in the United States and the announcement of an economic stimulus package for China.

The three main Wall Street indices posted gains on Tuesday. The major U.S. averages rose following the release of disappointing consumer confidence figures and the announcement of a stimulus package aimed at boosting China’s economy.

The Dow Jones Industrial Average, composed of 30 major companies, climbed 0.20% to 42,208.22 points, while the S&P 500, which tracks 500 companies, rose 0.25% to 5,732.93 points. The tech-heavy Nasdaq Composite advanced 0.56% to 18,074.52 points.

Initially, the indices trimmed their gains after a Conference Board report revealed an unexpected drop in consumer confidence for September, which, however, also fueled expectations of further rate cuts by the Federal Reserve.

SPX

On a more positive note, stocks responded favorably to news of China’s stimulus approval, boosting optimism among traders. Shares in commodities, energy, and especially mining sectors reacted positively. Today’s price movements were largely driven by overnight developments, particularly China’s policy announcements, including direct support for its equity markets and pledges to cut interest rates.

Additionally, Chinese companies listed in the U.S., such as Alibaba and PDD Holdings, saw gains in line with the positive performance of their domestic markets. In the U.S. tech sector, Nvidia stood out with a 4% increase.

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ABOUT THE AUTHOR See More

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.