U.S. Stocks Rise While China Rally Powers Ahead
July 08 2020 - 5:14PM
Dow Jones News
By Joe Wallace and Gunjan Banerji
U.S. stocks rose Wednesday, while mainland Chinese shares
extended their winning streak for a seventh consecutive day.
Major indexes wavered for much of the day before turning higher
late in the session. The jump helped claw back losses from the
prior session, when the S&P 500 fell and snapped its
five-session winning streak.
Stocks have traded in a narrow range for the past month, after
zipping higher for much of the second quarter. Investors have been
weighing stimulus efforts by central banks and governments against
signs that the rebound in U.S. economic growth has lost speed.
Meanwhile, there's been a jump in coronavirus cases in parts of the
country, and tensions have risen between China and the U.S.
"I would characterize the stock market as relatively immune to
the [health] crisis," said Gregory Perdon, co-chief investment
officer at Arbuthnot Latham & Co., a U.K. private bank. It is
difficult for stock prices to go down when stimulus measures by the
Federal Reserve and European Central Bank have pinned down bond
yields, he added.
That has been on display this week.
The Nasdaq Composite added 148.61 points, or 1.4%, to 10492.50
on Wednesday, clinching a fresh record. The S&P 500 advanced
24.62 points, or 0.8%, to 3169.94, led higher by shares of
technology companies. The Dow Jones Industrial Average gained
177.10 points, or 0.7%, to 26067.28.
Despite the recent stock gains, there are signs investors are
looking for safety. Gold prices are hovering at the highest level
since September 2011, settling Wednesday at $1815.50 a troy
ounce.
Meanwhile, shares of hotels, airlines, restaurants and other
companies that have been heavily affected by coronavirus-related
lockdowns have fallen over the past month.
"There's definitely never been more unknown unknowns out there.
We'll have to see whether the economy can stay open and people can
get back to work," said Nancy Davis, portfolio manager of the
Quadratic Interest Rate Volatility and Inflation Hedge
Exchange-Traded Fund.
The unemployment rate fell in June but still hovered at
11.1%.
And the U.S. on Tuesday reported 60,000 new coronavirus cases, a
single-day record, according to data compiled by Johns Hopkins
University.
Chinese shares resumed their recent spurt, pushing the Shanghai
Composite Index up 1.7%. The index has advanced 8% this week as
individual investors bet that a recovering economy will boost
profits. The streak has revived memories of an earlier rally in
Chinese stocks in 2015, which ended in a crash.
International stock markets were mixed. Japan's Nikkei 225 Index
was down 0.8%. The Stoxx Europe 600 fell 0.7%.
Write to Joe Wallace at Joe.Wallace@wsj.com and Gunjan Banerji
at Gunjan.Banerji@wsj.com
(END) Dow Jones Newswires
July 08, 2020 16:59 ET (20:59 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.