U.S. Market Averages Scale Higher After China Stimulus Measures Lift Resource Stocks

Barry Adams
28 Aug, 2023
New York City

Market indexes on Wall Street advanced in Monday's trading and crude oil commodities were in focus after China measures. 

Energy and base metal prices advanced on the hopes that China measures will revive the flagging confidence in stock markets and policymakers may announce measures to lift confidence in the property market. 

China's finance ministry cut stamp duty by half to 0.05% and lowered margin requirement to 80% from 100%, hoping to revive market confidence and support flagging markets. 

Market indexes in Hong Kong are down about 9% in the year so far, the worst performing market among 15 leading markets around the world and the Shanghai Composite index fell 1% in the period. 

The measures are likely to fall short in reviving market confidence as consumer confidence remains weak and corporations are looking to cut costs amid falling exports and weakening corporate profits.

Investors also reviewed the latest comments from the Federal Reserve Chair Jerome Powell last week. 

Investors are still divided about the future direction of interest rates but more market participants are looking for the Fed to lift rates at the next policy meeting in about three weeks. 

 

U.S. Indexes & Yields 

The S&P 500 index traded up 0.6% to 4,431.21 and the Nasdaq Composite gained 0.5% to 13,676.28.  

The yield on 2-year Treasury notes increased to 5.07%, 10-year Treasury notes inched higher to 4.22% and 30-year Treasury bonds edged up to 4.27%. 

West Texas Intermediate crude oil and Brent crude oil prices hovered near the levels last seen In April.  

Crude oil decreased $0.85 to $80.68 a barrel and natural gas prices decreased 12 cents to $2.66 a thermal unit. 

 

U.S. Stock Movers 

3M Company jumped 3.8% to $102.74 after a report from Wall Street Journal suggested that the company is close to settling for $5.5 billion for its liabilities related to military-grade earplugs. 

Boston Scientific Corporation jumped 4.8% to $53.20 after the company reported on Sunday encouraging results for its treatment of patients with abnormal heart rates. 

Xpeng Inc ADR increased 2.7% to $18.0 after the company agreed to acquire the smart electric car business from ridesharing company Didi for $744 million. 

Mister Car Wash Inc soared 8% to $7.45 after positive comments from analyst at the brokerage firm Piper Sandler. 

Mister Car Wash stock has fallen 21% in the year so-far.