Stocks opened the week’s trading solidly higher amid reports that China is easing some of its COVID-related restrictions following a roughly two-month lockdown across several heavily populated areas of the country.
Additionally, a report in The Wall Street Journal indicated Chinese officials are nearing an end to their probes into several U.S.-listed firms – including ride-hailing company Didi Global (DIDI, +24.3%) – adding to signs Beijing may be taking steps to boost economic growth.
“While there may be little excitement in the U.S. market, China’s recent attempts to reassure support to domestic firms may have a positive impact on global bourses this week,” says Kunal Sawhney, CEO of Australian research firm Kalkine Group. “Major technology stocks worldwide were trading higher on Monday after Beijing said it is concluding its DiDi Global probe. After the statement, ADRs of Alibaba Group (BABA, +6.2%), DiDi Global, Baidu (BIDU, +2.5%) and JD.com (JD, +6.5%) saw significant gains.”
But the major benchmarks began easing back from their earlier gains by midday amid a spiking 10-year Treasury yield – which jumped 8.9 basis points (a basis point is one-one hundredth of a percentage point) to 3.044%, its highest level since December 2018.
Strength in the communication services (+0.04%) and consumer discretionary (+1.0%) sectors helped markets regain their footing in early afternoon trading, thanks in large part to a solid day for Amazon.com (AMZN). The e-commerce giant added 2.0% on the first day of trading following its 20-for-1 stock split.
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At the close, the Nasdaq Composite (+0.4% at 12,061) and S&P 500 Index (+0.3% at 4,121) were modestly higher. Meanwhile, the Dow Jones Industrial Average – which was up 1% at its session peak – eked out a 0.05% gain to end at 32,915.
Monday’s lurches could be a sign of what’s to come for this week, says Dan Wantrobski, technical strategist and associate director of research at Janney Montgomery Scott. All eyes will be on this Friday’s important consumer price index (CPI), slated for release at 8:30 a.m. ET. Until then, Wantrobski says, “expect volatile, choppy trading in both directions.”
Other news in the stock market today:
- The small-cap Russell 2000 rose 0.4% to 1,889.
- U.S. crude futures slipped 0.3% to end at $118.50 per barrel.
- Gold futures gave back 0.3% to finish at $1,843.70 an ounce.
- Bitcoin jumped 6.4% to $31,432.36. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.)
- A lawyer for Tesla (…….