S&P 500 and Nasdaq set to snap six-day losing streak


(Reuters) – U.S. stocks rose on Tuesday as China stepped in to stabilize the yuan, soothing concerns that currencies would be the latest weapon in the long-drawn trade war, a day after Wall Street suffered their sharpest one-day percentage drops of the year.

Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., August 6, 2019. REUTERS/Brendan McDermid

China’s overnight intervention came after the U.S. Treasury Department labeled Beijing as a currency manipulator as it let the yuan slide to a more than decade low on Monday.

A steep fall in the Chinese currency had led the benchmark S&P 500 .SPX and Nasdaq .IXIC record their sixth straight session of declines, losing at least 3% each in the previous session.

China’s move to fix the yuan at a slightly stronger rate and White House economic adviser Larry Kudlow’s comment that President Donald Trump was planning to host a Chinese delegation for further talks in September allayed fears of a further escalation in trade war.

The S&P 500, still reeling from last week’s shock when President Donald Trump vowed to slap a 10% tariff on a further $300 billion in Chinese imports, is 5.6% away from its all-time high hit last month.

“Both sides are at that point where they must go back and renegotiate,” said Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh.

“Yesterday’s big drop off has allowed bargain hunters to find bargains.”

The technology sector .SPLRCT, which includes companies that have a big exposure to China and were at the heart of Monday’s selloff, rose 0.68%.

Apple Inc (AAPL.O) gained 0.8% after three days of heavy losses, while Philadelphia Semiconductor index .SOX edged 0.40% higher.

At 12:55 p.m. ET, the Dow Jones Industrial Average .DJI was up 61.05 points, or 0.24%, at 25,778.79, the S&P 500 .SPX was up 9.12 points, or 0.32%, at 2,853.86. The Nasdaq Composite .IXIC was up 32.53 points, or 0.42%, at 7,758.57.

Among other stocks, Take-Two Interactive Software Inc (TTWO.O) jumped 9.5% after the videogame publisher raised its full-year revenue forecast.

The materials sector .SPLRCM dropped 1%, weighed by a more than 13% fall in scent and flavor maker International Flavors & Fragrances (IFF.N) and fertilizer company Mosaic Co (MOS.N) after the two companies cut their full-year earnings forecasts.

Payments processor Mastercard Inc (MA.N) gained 2.1% after it said it would buy a majority of the corporate services businesses of Scandinavian payments group Nets for about $3.19 billion.

Walt Disney Co (DIS.N) was up 0.8% ahead of its results after market close.

Advancing issues outnumbered decliners by a 1.20-to-1 ratio on the NYSE and by a 1.03-to-1 ratio on the Nasdaq.

The S&P index recorded two new 52-week highs and 23 new lows, while the Nasdaq recorded 17 new highs and 166 new lows.

Reporting by Medha Singh and Arjun Panchadar in Bengaluru; Editing by Anil D’Silva and Arun Koyyur

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