Wall Street bounces back at the opening; China’s nerves slacken as Fed rallies; Dow Up 230 Pts By Investing.com
By Geoffrey Smith
Investing.com – US equity markets opened higher on Tuesday, rebounding from their worst day in months on Monday as nerves over China’s housing debt crisis eased.
Better-than-expected housing market data also supported sentiment. Housing starts and building permits for August both beat expectations, but not enough to cause the Federal Reserve to accelerate the schedule to cut asset purchases or raise interest rates. The Fed’s final two-day policy meeting begins later Tuesday.
As of 9.45 am ET (1345 GMT), it was up 232 points, or 0.7%, to 34,202 points. The was up 0.5% and the was up 0.6%.
The impending default of the China Evergrande (OTC 🙂 group – it has previously ignored payments to bank creditors – continues to occupy people’s minds, with many being aware that it could become the second largest bankruptcy in history, after the collapse of Lehman Brothers in 2008.
Wall Street analysts – who hardly stood out before this fiasco – downplayed the risk of a systemic financial crisis in China, pointing to the still wide range of options available to Beijing.
“We don’t see the Evergrande crisis as China’s Lehman moment,” analysts at Citigroup (NYSE 🙂 wrote, because policymakers will likely prevent systematic risk “to buy time to resolve debt and advance marginal easing for the global credit environment.”
Mainland Chinese stock markets reopen after a long bank holiday weekend on Wednesday, and most analysts expect at least some metrics to be announced before then.
Uber (NYSE 🙂 stock stood out early in trading, up 7.6% after a securities filing in which the company said it expects to make a profit at the level of the Adjusted EBITDA – his preferred measure – in the current quarter, thanks to a rebound in its ridesharing business and continued strength in food delivery. He previously said his first profit may have to wait until the last quarter of 2021 or even later. Lyft (NASDAQ 🙂 the stock was up 2.8% in sympathy.
Elsewhere, Quantumscape (NYSE 🙂 stock came out of a five-month coma, up 16% after the company said it signed a deal with another “top 10” automaker, which it said , was “committed to working with the company to evaluate the prototypes.” of the company’s solid-state battery cells and purchase 10 (megawatt-hours) of facility capacity for the company’s pre-pilot production line. “
Quantumscape’s claims that it was approaching a breakthrough in so-called “solid-state” battery technology, promising a revolutionary increase in the power of electric vehicle batteries, was in the spotlight earlier in the year. year after a short seller Scorpion Capital published an investigation into its alleged shortcomings. That caused the shares of the Volkswagen-backed company to fall more than 90% from its peak.
Vaccine makers were also in demand, with BioNTech (NASDAQ 🙂 up 1.5% and Moderna (NASDAQ 🙂 stock rose 1.2%, while Johnson & Johnson (NYSE 🙂 stock rose 0.6% after saying its single-shot vaccine was shown to be much more effective. elevated with a booster injection after several weeks.
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