Dow soars 506 points as stocks recoup nearly all losses from Evergrande sell-off
- The Dow Jones soared more than 500 points on Thursday as fears of the Evergrande debt crisis subsided.
- China told Evergrande to pay its upcoming US-dollar denominated debt payments and avoid default, according to a Bloomberg report.
- Meanwhile, Beijing is telling local officials across the country to prepare for a "possible storm" related to the Evergrande debt crisis, The Wall Street Journal reported.
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US stocks soared on Thursday, recouping nearly all of the Evergrande-induced losses from Monday as fears of the potential debt crisis ebb.
The gain on Thursday came after Bloomberg reported that China told Evergrande to pay its upcoming debt payments on US-dollar denominated bonds, and to avoid default. That may be giving investors a reason for relief as the S&P 500 trades just ten points below last Friday's levels.
But longer-term, Evergrande's $300 billion debt problem isn't going away, and Beijing is warning local officials across the country to prepare for a "possible storm" related to a potential default of the country's second largest property developer, The Wall Street Journal reported.
Here's where US indexes stood at the 4:00 p.m. ET close on Thursday:
- S&P 500: 4,448.94, up 1.21%
- Dow Jones Industrial Average: 34,766.00, up 1.48% (506.50 points)
- Nasdaq Composite: 15,052.24, up 1.04%
US weekly jobless claims rose to 351,000 last week as the hiring recovery continued to move forward. That's slightly higher than economist expectations of 320,000. Continuing claims increased 2.85 million for the week that ended September 11.
Cathie Wood said at a Morningstar investment conference on Wednesday that Ark Invest would sell its position in Tesla if the stock hit its 5-year price target of $3,000 within the next year and little changes to its long-term thesis. Wood also reiterated her view that the stock market is not in a bubble.
Wood's Ark Invest bought the dip in shares of DraftKings after the stock tumbled due to news of a potential $20 billion buyout of Entain.
Altcoins surged on Thursday, with cosmos, dot, and sol jumping sharply as the Evergrande debt crisis continues to cool down.
Twitter said it will now allow users to send and receive tips in bitcoin, and that it will look into authenticating NFTs amid the ongoing crypto craze.
Coinbase wants to strengthen its legal and compliance team as it steps up collaboration with crypto regulators. The move comes after its recent spat with the SEC regarding a lending product.
Gold fell as much as 1.70%, to $1,748.50 per ounce.
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