US STOCKS closed higher yesterday after Wall Street found relief in Beijing’s efforts to halt a rout in Chinese stocks, which lifted markets around the world.
Shares of Apple bucked the market and logged their first five-day losing streak since January as investors worried that consumers in China might have less money to spend on iPhones.
Wall Street had fallen sharply in the previous session as market turmoil in China, a rout in commodity prices, the Greek debt crisis and a major outage on the New York Stock Exchange spooked investors.
China’s securities regulator, in its most drastic step yet to arrest a selloff on Chinese stock markets, banned shareholders with large stakes in listed firms from selling for the next six months.
About 30 per cent has been knocked off the value of Chinese shares since mid-June. Some investors fear that the turmoil in the Chinese market could destabilise the global financial system, making it a bigger risk than the Greek crisis.
Adding to cautious optimism on Wall Street, European markets rose on hopes that Greece might be able to win a deal that could keep it in the Eurozone.
The Dow Jones industrial average rose 33.2 points, or 0.19 per cent, to end at 17,548.62. The S&P 500 gained 4.63 points, or 0.23 per cent, to 2,051.31 and the Nasdaq Composite added 12.64 points, or 0.26 per cent, to 4,922.40.
All three indexes earlier traded up one per cent or more.