The U.S. stock market ignored another sell-off in China and surged higher in opening trading Tuesday, partly reversing a severe plunge over the prior three sessions. European stocks also rose.
The Dow Jones industrial average jumped 379.28 points, or 2.4 percent, to 16,250.63 within the first half-hour of trading. The blue-chip measure had tumbled 8.5 percent over the last three sessions.
All 30 of the Dow’s component stocks were higher. Apple Inc. soared 5.4 percent, Procter & Gamble Co. was up 3.4 percent and Walt Disney Co. gained 3 percent.
The broader Standard & Poor’s 500 index rose 43.58, or 2.3 percent, to 1,936.79 and the Nasdaq composite index gained 133.34 points, or nearly 3 percent, to 4,659.59.
The upswing in U.S. share prices followed rallies on European and some Asian markets, even though Chinese stocks continued to tumble.
Key markets indexes in Japan, Taiwan, Germany and France were up between 3.6 percent and 4.5 percent.
China’s benchmark markets gauge, the Shanghai composite index, dropped an additional 7.6 percent on Tuesday, and it’s now dropped 40 percent from its June high.
Concerns about China’s slowing economic growth have been the main factor driving stock prices lower around the world in recent days.
But China’s central bank announced Tuesday it was cutting its benchmark interest rate to foster more lending and, to increase liquidity in the market, China also said it pumped more than $23 billion into its financial system.
By James F. Peltz - Los Angeles Times (TNS)
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