Wall Street Strengthens Lifted Chinese and US Manufacturing Data

mediahostforph.com – Wall Street or the United States Exchange (US) closed higher on optimism about economic conditions in the second quarter related to manufacturing figures from China and the United States, which allayed concerns about slowing global growth.

Launching Reuters page , the Dow Jones Industrial Average rose 329.74 points, or 1.27 percent, to 26,258.42. While the S&P 500 index rose 32.79 points, or 1.16 percent, to 2,867.19, and the Nasdaq Composite added 99.59 points, or 1.29 percent, to 7,828.91.

This time the market was influenced by, among others, gains in global equities driven by data the Chinese manufacturing sector unexpectedly returned to growth in March. This is the first time in four months.

“Chinese manufacturing numbers bounce back, and people are taking more risk today because of that,” said Michael O’Rourke, chief market strategist at Jones Trading in Greenwich, Connecticut.

Similarly, US manufacturing figures in March were also better than expected, prompting investors to shrug off weak February retail sales data.

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Concerns about a slowing global economy have dimmed sentiment since the Federal Reserve announced in late January it would end monetary tightening earlier than expected. This refers to the “cross flow” conditions that affect the economy.

The Fed’s policy shift pushed 10-year bond yields, to below the three-month position, last week for the first time in more than a decade.

The 10-year yields have risen again above the three-month rate. Even on Monday, reaching the highest position in a week. This increase in yields helped lift financial stocks, which provided the biggest boost for the S&P 500 index among 11 index sectors. S&P 500 bank shares jumped 2.9 percent.

Concerns about the slowing momentum have not completely disappeared. With the reporting season for first-quarter corporate earnings coming in about two weeks, investors are preparing to see the first decline in US profits since 2016. Analysts expect quarterly earnings to fall 2 percent, according to Refinitiv data.

However, on Monday, most S&P sectors rose. Car manufacturers shares rose after the Chinese State Council said on Sunday that the country would continue to suspend additional tariffs on imports of US vehicles and parts after April 1.

General Motors Co. added 1.8 percent and Ford Motor Co. rose 2.3 percent.

The chip maker’s stock, which drew much of their income from China, is also on the rise. The Philadelphia Semiconductor Index rose 2.5 percent.

Wynn Resorts Ltd shares jumped 8.4 percent, the biggest among S&P 500 companies, as March gambling revenue from the Chinese region of Macau rose from the previous month.

The Wall Street trading volume this time reached 7.11 billion shares, compared with an average of 7.47 billion over the past 20 trading days.

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