(As of 7:20 am PST)
US stocks opened aggressively
higher Tuesday after a long holiday weekend which saw the US stock and bond
markets closed Monday. The Dow is up 300 points, while the S&P500 and
Nasdaq are also up between 1.5% and 2% as of 7:00 am PST. It’s difficult to
pinpoint the cause for today’s rally. A bit of “dip-buying” may have initiated
the bid up in stocks Monday, after Friday’s overselling prompted buyers to step
back in. Rumors of fresh stimulus in China also swirled about the investment
world Tuesday propping up stocks throughout Asia and Europe. A report on
China’s trade data showed weakness in Chinese exports, which fell in August for
the second consecutive month. China’s exports fell 5.5% in August, while
imports also declined significantly causing China’s trade gap to widen. Hopes
for additional easing measures from the People’s Bank of China sent the
Shanghai index soaring 2.9% Tuesday overshadowing the disappointing economic
headlines regarding the world’s second largest economy. Data is light on the home
front with investors now mostly concerned about what the Fed is going to do at
its next policy setting meeting on September 16-17. Oil prices are down 3%
today, while gold is flat on the day.
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