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20 Apr 2015
Wall Street cheers China’s RRR cut
FXStreet (Mumbai) - The stock markets in the US rallied, with Dow Jones Industrial Average (DJIA) gaining more than 1% after China brought in a fresh easing measure aimed at shoring up its economy.
The Dow Jones Industrial Average rose 212.70 points, or 1.2%, to 18,035, while the S&P 500 index gained 17.02 points, or 0.82%, to 2,098.20. The Nasdaq-100 index gained 40.74 points, or 0.94%, to 4,392.93.
The brighter start to trading comes after China cut the amount of reserves commercial banks are required to hold by one percentage point, a bigger-than-normal reduction that will free up around USD 200 billion for lending. Stocks had taken a beating on Friday due to China regulator’s crackdown on margin trading.
Among the DJIA stocks, IBM is up 2.24%, followed by a 2.15% gain in Chevron. Other major gainers are Cisco, 3M, and Boeing. On the other hand, shares in General Electric and shares in American Express are down 0.17% each.
Investors will keep an eye on corporate earnings for trading cues, given the absence of a major market moving today. Moreover, this week will represent the biggest earnings week of the first-quarter season, with 147 firms due to report - a 32% chunk of the S&P 500, notes Goldman Sachs.
The Dow Jones Industrial Average rose 212.70 points, or 1.2%, to 18,035, while the S&P 500 index gained 17.02 points, or 0.82%, to 2,098.20. The Nasdaq-100 index gained 40.74 points, or 0.94%, to 4,392.93.
The brighter start to trading comes after China cut the amount of reserves commercial banks are required to hold by one percentage point, a bigger-than-normal reduction that will free up around USD 200 billion for lending. Stocks had taken a beating on Friday due to China regulator’s crackdown on margin trading.
Among the DJIA stocks, IBM is up 2.24%, followed by a 2.15% gain in Chevron. Other major gainers are Cisco, 3M, and Boeing. On the other hand, shares in General Electric and shares in American Express are down 0.17% each.
Investors will keep an eye on corporate earnings for trading cues, given the absence of a major market moving today. Moreover, this week will represent the biggest earnings week of the first-quarter season, with 147 firms due to report - a 32% chunk of the S&P 500, notes Goldman Sachs.