FXStreet (Mumbai) – US stock markets rallied on Tuesday after the Labor Day holiday, following gains in Europe and China.
At the time of writing, the Dow Jones Industrial Average (DJIA) was up 260 points, or 1.6%, to 16360. The S&P 500 rose 1.5% and the Nasdaq Composite gained 1.8%. The US markets were closed Monday.
The stocks rebounded from a sharp sell-off on Friday when a mixed jobs report left investors divided about the outlook for interest rates. The rally witnessed today is more a product of risk-on rally triggered by a positive action in China and Europe. China’s Shanghai Composite Index jumped 2.9 % in a rebound from losses earlier in the day. Germany’s DAX advanced 2.4%, Britain’s FTSE 100 climbed 1.4%.
Experts also cite expectations of monetary easing in China as the reason for the rally in global stock markets. The data released earlier today showed China’s imports shrank far more than expected in August, falling for the 10th straight month. Imports fell 13.8% from a year earlier, more than the 8.2% drop economists had expected.
(Market News Provided by FXstreet)