S&P 500, Nasdaq Hit Record Highs on China Stimulus Hopes

S&P 500, Nasdaq Hit Record Highs on China Stimulus Hopes

NEW YORK (Sputnik) – Wall Street’s major stock indicators, including that of the biggest technology companies, hit record highs on expectations that China will offer more of a stimulus to lift the second-largest economy from the doldrums of the coronavirus.

The S&P 500, which reflects the performance of the top 500 stocks on the New York Stock Exchange, closed 0.5 percent higher at 3,386 on Wednesday after a record high of 3,393.

The technology-heavy Nasdaq Composite also hit all-time highs, soaring to 9,838 before closing up 0.5 percent at 9,817.

Wall Street’s broadest stock index, the Dow Jones Industrial Average, meanwhile, gained 0.4 percent to finish at 29,348. Prior to Wednesday, the Dow had fallen three days in a row, losing about 1% overall.

Earlier this week, the People’s Bank of China cut interest rates by 10 basis points on 200 billion renminbi ($28.6 billion) in loans offered via its medium-term lending facility, a key rate for interbank lending.

US investment bank Morgan Stanley on Wednesday estimated that Chinese first-quarter growth could fall as low as 3.5 percent due to the coronavirus, which has killed more than 2,000 people and infected over 74,000 in China.

Source: sputniknews.com

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