The Dow slithered toward a second straight gain on Tuesday as Wall Street gambled on an economic rebound – and ignored an ominous warning from Chinese President Xi Jinping.
Wall Street’s three major indices all opened to moderate gains. The Dow Jones Industrial Average rose 89.85 points or 0.33% to edge past the 27,000 level. At last check, the DJIA stood at 27,006.68.
The S&P 500 rose 11.95 points or 0.40% to 2,988.69. The technology sector led the index higher with a 0.68% rally. Altogether, nine of 11 primary sectors reported gains.
The Nasdaq outperformed, jumping 37.83 points or 0.47% to 8,037.17.
The Dow and its peers rose on optimism that new economic data will point to a rebound in US manufacturing. Economists expect the ISM’s purchasing managers index (PMI) to recover to 50.1 in September, which will indicate slight growth. In August, PMI dropped to 49.1, its first contraction in nearly four years.
September PMI data will be released at 10 am ET.
Wall Street brushed off comments from Chinese President Xi Jinping, who spoke forcefully on Tuesday at an event celebrating the 70th anniversary of the Communist Party’s rule.
“There is no force that can shake the foundation of this great nation,” Xi said, according to an official translation. “No force can stop the Chinese people and the Chinese nation forging ahead.”
Xi did not rebuke any foe by name, but the Hong Kong protests and the US-China trade war are twin specters that loom large over the holiday celebrations.
Clashes between the Hong Kong protestors and police have grown more violent this week. On Tuesday evening, Hong Kong police shot an 18-year-old man, and more than 30 adults were hospitalized due to injuries while Xi called for the “complete unification” of China during his speech on the mainland.
Meanwhile, the “goodwill” seems to have begun to evaporate from Washington-Beijing relations ahead of a new round of trade talks next week.
On Monday, Trump sarcastically wished China a happy birthday, seemingly threatening Beijing over its reluctance to agree to the White House’s proposed trade deal terms.
That tweet followed multiple reports that indicated his administration was mulling new policies that would put even more pressure on China’s economy by limiting US investment in the country.
This morning, Trump sent another congratulatory tweet, this one devoid of sarcasm or any apparent threats.
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Last modified: September 23, 2020 1:04 PM