The Dow’s recovery sped toward 300 points after China manipulated its currency market – this time in the direction stock traders want. | Source: NICOLAS ASFOURI / POOL / AFP
The Dow and broader U.S. stock market began their long road to recovery on Tuesday after the People’s Bank of China (PBoC) announced it would take decisive measures to stabilize the yuan.
In other words, PBoC is manipulating the currency market in the direction that appeases stock traders.
Dow Rallies; S&P 500, Nasdaq Follow
Wall Street’s major indexes were in recovery on Tuesday after posting their worst trading session of 2019. The Dow Jones Industrial Average rallied 271.36points, or 1.06%, to 25,989.1.
The Dow Jones Industrial Average begins its long road to recovery on Tuesday. | Source: Yahoo Finance.
The broad S&P 500 Index of large-cap stocks rallied 1.19% to 2,878.55. Nine of 11 sectors contributed to the rally, with information technology leading the pack.
A strong rebound in tech shares propelled the Nasdaq Composite Index higher. The index was up 1.37% at 7,831.52 as of 3:22 pm ET.
People’s Bank of China stems yuan’s decline on Tuesday. | Source: Shutterstock.
The People’s Bank of China announced Tuesday that it would provide some stability to the yuan after officials let their midpoint rate slide above 7 per U.S. dollar for the first time in over a decade. By orchestrating a fall in the yuan, China was able to convey to the world that it has plenty of ammunition to combat the U.S.-led trade war.
As Bloomberg reported, PBoC officials set the daily currency peg on the CNY stronger than analysts had expected and announced plans to sell yuan-denominated bonds in the coming