Wall Street jumps after China rebound - New York Report

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tock

tocks rose more than two per cent yesterday, bouncing after steep losses last week and a China-fuelled rebound in global equities.

The Dow Jones industrial average rose 390.3 points, or 2.42 per cent, to 16,492.68, the S&P 500 gained 48.19 points, or 2.51 per cent, to 1,969.41 and the Nasdaq Composite added 128.01 points, or 2.73 per cent, to 4,811.93.

Gains were broad-based and followed a three-day US holiday weekend. All but one of the 10 major S&P sectors ended with gains of more than two per cent.

Hopes for more stimulus measures from the Chinese government increased after data yesterday showed that the country’s imports shrank far more than expected in August, falling for the 10th straight month.

“We had some nice buying opportunities with the selloff in August, and I think people are starting to take advantage of that and put money to work,” said Larry Peruzzi, senior equity trader at Cabrera Capital Markets in Boston. “In China it seems like there is a willingness to continue with stimulus, so hopefully those markets will stabilise.”

Apple shares gave the biggest boost to the S&P and the Nasdaq, rising 2.8 per cent at $112.31, a day before the iPhone maker is expected to unveil new offerings. Fitbit was up 11.2 per cent at $35.46 after Morgan Stanley upgraded the stock to “overweight”.

Media General fell six per cent to $10.48 after it said it would buy diversified media company Meredith Corp for about $2.34bn to create the third-largest local TV station owner in the United States. Meredith was up 9.9 per cent at $50.47.