Stocks rise on China stimulus and renewed semi surge
The S&P 500 edged up 0.3%, hitting another record intraday and closing high. The tech-focused Nasdaq 100 outperformed, adding 0.5%. The Russell 2000 gained 0.2%.
Major indices initially slid after a reading of US consumer confidence, which dropped the most since August 2021. But the loss was soon recovered.
China-related materials, luxury goods, retail and casino stocks all jumped on news that the country’s central bank unveiled a series of monetary stimulus and support for the property sector to boost China’s sluggish economy.
Shares of mining company Freeport-McMoRan closed 7.9% higher, thanks to favorable copper prices, which rose in expectation of stronger demand from China. Estée Lauder, which previously declined more than 40% this year on slowing demand from China, rose 6.1% on Tuesday. Casino companies such as Las Vegas Sands and Wynn Resorts were also among the best S&P 500 performers today.
Among other individual stocks, Nvidia led Magnificent Seven stocks on Tuesday, up 4%, after CEO Jensen Huang completed the sale of six million shares. Visa stock tumbled 5.5% after the Justice Department sued the company for antitrust violations.
Sector performance was mixed. Materials was up 1.4%, the most among all 11 sectors. Financials was the weakest sector, falling 0.8%.
The greenback weakened, with the US Dollar Spot Index finishing with its lowest close since July 2023.
