Leading Wall Street indices rose on Tuesday as strong retail sales data and a range of strong forecasts strengthened a positive global atmosphere, fueled by hopes of easing a blow to tech companies and anti-Covid measures. 19 in China.
The Dow Jones industrial average rose 203.58 points, or 0.63%, to 32,427 points. The Standard & Poor’s Index also rose 43.99 points, or 1.10%, to 4052 points, while the Nasdaq Composite Index rose 242.78 points, or 2.08%, to 11905.57 points.
The Commerce Department reported on Tuesday that retail sales in April rose 0.9%, a strong increase that underscores the ability of Americans to continue spending growth even though inflation remains at its highest level in nearly 40 years.
Investors are also looking at comments from Federal Reserve officials that could provide an insight into the U.S. economic outlook and future policy moves.
The market is trying to recover after a recession witnessed by the Nasdaq index and a 19% drop in the S&P index.
Citigroup shares rose 7% after a Monday night appearance revealed that Berkshire Hathaway Inc. has poured nearly $ 3 billion into troubled bank shares. Citi shares have performed poorly compared to the rest of the companies in the financial sector over the last 12 months, falling by almost 40%.
Shares of travel companies appeared during pre-trade trading as United Airlines raised its second-quarter earnings forecast thanks to improved demand. The company’s share rose 4%, and Delta’s jumped 3%, while American Airlines shares rose 3%.
Home Depot shares rose more than 3% as the retailer reported better-than-expected quarterly results and boosted its full-year forecast.
Shares of AMD Semiconductor rose more than 3% after a promotion by Piper Sandler, who recommended buying the stock. Shares of Nvidia rose 3%, shares of Qualcomm rose 2.4%, while shares of Micron Technology rose 2%.
At the same time, Wal-Mart shares fell more than 5% after the retail giant announced a drop in its quarterly profit due to inflation.
Tuesday’s gains come after a strong trading session in Asia as traders hailed the easing of China’s COVID-19 precautionary measures in Shanghai. Hong Kong shares rose 3.2%, while the Shanghai index rose 0.65%.
Tuesday’s recovery represented the market’s latest attempt to recover after weeks of sharp losses, as the S&P emerged from a six-week losing streak, the longest since 2011. Meanwhile, the Dow fell for seven consecutive weeks, marked its longest decline. It has been every week since 2001. So far, the S&P 500 and Dow have fallen 15.9% and 11.3% respectively.
European stocks rose on Tuesday, set to extend gains for the third consecutive session, backed by hopes of continued demand from China as authorities seek to ease Covid-19 restrictions.
The Stoxx 600 Index rose 0.7% during trading, amid gains for all major sub-sectors, led by the travel sector and commodity-related stocks.
The main index closed on Monday after data showing slowing growth in China weighed on risk appetite.
But the sentiment got a boost as Shanghai achieved the long-awaited achievement of three consecutive days without detecting any new COVID-19 cases, which could lead to the start of lifting the restrictions.
Among individual stocks, French energy group Engie jumped 6.2% after posting an increase in first-quarter profit and boosting its forecast for 2022. The company also said it was in talks with Russia’s Gazprom to change its payment system. of price for Russian gas supplies.
And Daimler Truck Holdings’ share rose 4.8% after boosting its 2022 earnings forecast. Vodafone shares fell 3% as earnings growth forecasts for the current year fell short of market expectations.
In Tokyo, the Japanese Nikkei index closed higher for the third consecutive session on Tuesday, as optimism about the end of the closing set to fight Covid-19 in China, Japan’s main trading partner, outpaced disappointing financial results.
The Nikkei index showed volatile trading before closing 0.42 percent to 26,659.75 points, after falling briefly at the start of trading, before rising with other regional markets following the opening of rising Chinese stocks.
Energy stocks topped gains among Nikkei sub-indices, which jumped 3.62 percent as crude oil prices rose overnight in anticipation of a return to Chinese demand.
The broader Topix index rose 0.19 percent to 1866.71 points.
The sentiment grew after Shanghai achieved the long-awaited achievement of three consecutive days without detecting any new COVID-19 cases, which could lead to the start of lifting the restrictions.
Among the 225 shares of the Nikkei index, 124 rose against 97 that fell, with four remaining stable.
The biggest loser was Asahi Holdings, which fell 10.86 percent after reporting an 83 percent drop in quarterly operating profit. Shares of rival Kirin Holdings fell 4.25 percent. The share of the advertising and advertising giant also fell, Dentsu Group, after disappointing financial results as well, as the share lost 6.16 percent. (agencies)