US stocks moved higher on Tuesday as investors assessed the steps China was taking to ease its stringent COVID-19 restrictions.
The country said it would cut in half the isolation time required by new arrivals to its country, in a sign that China is getting serious about driving a rebound in the growth of its economy. Additionally, Shanghai and Beijing both reported no new infections, an encouraging sign that supply chain bottlenecks should continue to ease.
“The COVID crisis appears to be rapidly retreating in China, with no major cities in widespread lockdown and a rapid drop in cases being reported,” Susannah Streeter, a market analyst at Hargreaves Lansdown, said.
Here’s where US indexes stood shortly after the 9:30 a.m. ET open on Tuesday:
S&P 500: 3,944.84, up 1.15%Dow Jones Industrial Average: 31,848.27, up 1.3% (410.01 points)Nasdaq Composite: 11,627.83, up 0.91%Concerns of the US entering a recession continue to be top of mind for investors this week. Ark Invest’s Cathie Wood told CNBC on Tuesday that she believes the US is currently in a recession, implying the idea that second-quarter GDP growth will be negative.
Meanwhile, New York Fed President John Williams told CNBC that a US recession is not his base case, and that the country could avoid a period of declining economic growth even in the face of higher interest rates.
But higher interest rates are having a big impact on the housing market as mortgage rates touch the 6% threshold, leading to a slowdown in sales. Home price increases slowed in April, according to data from S&P Case-Shiller.
Robinhood stock saw volatile trades Tuesday morning after Sam Bankman-Fried said FTX is not in active talks to acquire the brokerage firm. Robinhood surged as much as 22% on Monday following a Bloomberg report of a potential merger between the two companies.
Warren Buffett continues to view Occidental Petroleum as an attractive investment, with SEC filings showing that Berkshire Hathaway added another $44 million to its more than $9 billion stake in the oil and gas explorer.
West Texas Intermediate crude oil rose as much as much as 1.12% to $110.80 per barrel. Brent crude, oil’s international benchmark, jumped as much as 1.29% to $116.58.
Bitcoin rose 1.32% to $20,991. Ether prices jumped 3.79% to $1,225.
Gold rose as much as 0.09% to $1,826.50 per ounce. The yield on the 10-year Treasury was flat at 3.22%.
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