The stock markets in the United States rallied today led by the Russell 2000, up by 73.9%. The Dow Jones, S&P 500, and NASDAQ gained more than 2% today.
Bloomberg noted that the global equities rallied driven by the positive momentum of the Chinese stock markets.
Matt Maley, an equity strategist at Miller Tabak & Co LLC, commented, “Now that China showed that it was not going to break down further, our market is taking back what it lost on Friday. The market got hit hard on Friday because people were worried about China.”
Over the past few weeks, U.S. stocks experienced volatility amid concerns that slowdown of the Chinese economy could pressure the global economic growth. Investors also predicted that the Federal Reserve could raise interest rates this year.
[drizzle]Pierre Mouton of Notz, Stucki & Cie in Geneva said, “These next two weeks are very important — the Chinese market has reopened, we have FOMC next week, we may get some guidance from U.S. companies.”
When it comes to China’s economic situation, Mouton said investors could think positive and believe that the government can handle the situation, and everything will become normal or think negative that a downward spiral already started.
Meanwhile, Walter “Bucky” Helwig commented that investors are just enjoying a “snapback rally today.” He said, “The market was slightly oversold, and there was a lack of any bad news from over the weekend.”
- Dow Jones Industrial Average (DJIA) – 16,492.68 (+2.42%)
- S&P 500- 1,969.41 (+2.51%)
- NASDAQ- 4,811.93 (+2.73%)
- Russell 2000- 1,974.56 (+73.9%)
- EURO STOXX 50 Price EUR- 3,233.84 (-+1.12%)
- FTSE 100 Index- 6,146.10 (+1.18%)
- Deutsche Borse AG German Stock Index DAX- 10,271.36 (+1.61%)
- Nikkei 225- 17,427.08 (-2.43%)
- Hong Kong Hang Seng Index- 21,259.04 (+3.28%)
- Shanghai Shenzhen CSI 300 Index- 3,334.02 (+2.57 %)
Stocks in Focus
The stock price of Alibaba Group Holding declined more than 4% to $60.93 per share. The Chinese e-commerce giant’s market capitalization dropped to $155.39 billion after experiencing a 10-month stock decline. Alibaba’s title as the largest internet company in Asia is now held by Tencent Holdings.
Fitbit surged more than 11% to $35.50 per share. Analysts at Morgan Stanley upgraded their rating on the stock to Overweight from Equal Weight.
Regeneron Pharmaceuticals gained more than 8% to $542.76 per share. UBS analysts raised their rating on the stock to Buy from Sell.