Wall Street Ends Higher on Chinese Stocks’ Recovery

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Wall Street Ends Higher on Chinese Stocks’ Recovery

US stocks ended higher, bouncing back from a selloff a day earlier, on China’s efforts to stop a rout in its markets and speculation by investors that last ditch deliberations between Greece and its international creditors would produce an agreement.

The Dow Jones Industrial average ended about 33 points or 0.2% higher 17,548.62 paring most of its 260 point gain earlier in the day on a slump in Apple shares.

The S&P 500 index closed 4.61 points or 0.2% higher at 2051.31 points while the Nasdaq Composite ended 12.64 points or 0.3% higher at 4922.4 points.

According to Reuters, US stocks had fallen sharply weighed down by market turmoil in China, a major outage in the New York Stock Exchange and the Greek financial crisis.

The New York Stock Exchange resumed on Wednesday afternoon in time for the market close that day.

The tone of trading was however set in Beijing where Chinese equities recorded their biggest one day rally in more than six years.

The rally in Chinese markets spurred most of the global stocks higher.

Apple Inc slipped 2%, knocking off more than 17 points off the Dow Jones Industrial Average, on concerns that the recent selloff in equities in Chin had destroyed a great part of its investors wealth.

“The people who are playing the local Chinese stock market are probably more well off, and those are incremental buyers of the iPhone and other Apple products,” Ian Winer, director of equity trading at Wedbush Securities, told the Wall Street Journal.

“Apple seems to be acting as an indicator of what people think is going to happen to demand from China.”

Also boosting market sentiment were minute from the Federal Reserve’s June policy meeting which indicated that the Fed needed to see more signs of economic improvement before hiking the country’s interest rates.

To contact the reporter of the story: Samuel Rae at samuel@forexminute.com