The U.S. stock market reached a plateau at midday but still held substantial gains, after sagging Chinese stocks got a welcomed boost. At 2 p.m. ET, the Fed is expected to announce an increase in interest rates.
The Nasdaq led with a 2.6% gain, while the S&P 500 added 1.5%.
The Dow Jones Industrial Average rose 1%. Dow component UnitedHealth Group climbed past the 501.03 buy point of a double-bottom base in heavy trading. The stock, which is also in the IBD 50, receded below the entry.
Volume rose on the NYSE and Nasdaq compared with the same time on Tuesday.
Chinese Stock Market Jumps Back To Life
Chinese Vice Premier Liu He and other officials made comments to support the ailing Chinese stock market. Among the remarks, officials suggested China may ease its long crackdown on technology companies.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 33893.30 | +348.96 | +1.04 |
| S&P 500 | (0S&P5) | 4327.01 | +64.56 | +1.51 |
| Nasdaq | (0NDQC ) | 13286.34 | +337.72 | +2.61 |
| Russell 2000 | 199.49 | +3.71 | +1.89 | |
| IBD 50 | 37.26 | +0.57 | +1.55 | |
Last Update: 11:44 AM ET 3/16/2022 |
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The Hong Kong Hang Seng Index soared 9.1%, its largest one-day gain since Oct. 30, 2008. The Shanghai Composite jumped 3.5% in the biggest rise since July 6, 2020. The Tokyo Nikkei 225 also climbed, closing with a 1.6% increase.
The Hang Seng has been in a bear market that saw the index plummet to the lowest level since June 2012. KraneShares China Internet ETF skyrocketed 31%. The iShares China Big Cap ETF rose 15% at midday. Besides regulatory issues, Chinese stocks face risks from a surge in Covid cases in China, possible aid to Russia and other problems.
Tencent Holding, Alibaba, Vipshop and Nio soared 21% to 25% in U.S. trading.
The Federal Reserve will announce its new policy statement at 2 p.m. ET today, which is widely expected to come with a quarter-point interest rate increase. It would be the first of several more rate hikes investors expect.
The stock market will be watching Fed Chairman Jerome Powell's comments for indications on the pace of the tightening cycle and the Fed's plans to unwind its massive balance sheet.
Ukrainian President Volodymyr Zelenskiy, speaking to members of Congress, asked for more U.S. aid in fighting Russia's invasion. While fighting continued, a path toward a cease-fire was starting to emerge, reports said.
Starbucks, Costco, J.B. Hunt Make Key Moves
Starbucks rallied 7% in big volume after the company said CEO Kevin Johnson will be retiring, and former chief Howard Schultz will be interim chief executive. Starbucks said Johnson's departure had been discussed for about a year, and Johnson wanted to wait until the pandemic faded.
Starbucks stock earlier this week touched an August 2020 low. But today it is up the most since April 6, 2020, according to Dow Jones Market Data.
Innovator IBD 50 ETF leapt 1.6% as three stocks in the index rose above buy points.
Regeneron rose above the 673.96 buy point of a cup base. Volume was only 22% above average as the breakout sought traction.
Costco broke out from a cup with handle base but volume faded even though shares held above the entry. The relative strength line also made new highs, a good sign.
J.B. Hunt rose 6.5% and topped the 208.97 buy point of a flat base. Volume is heavy and the relative strength line is making new highs. But the trucking company's shares dipped below the buy point after the initial push.
Tricon Residential and Commercial Metals rose to new highs. Commercial Metals reports earnings Thursday morning.
Stock Market Gets Retail Sales Data
In economic news, retail sales rose a sluggish 0.3% in February, slightly below economists' forecasts. Excluding autos, sales climbed 0.2%, below estimates for a 0.9% increase. But the January increase was revised upward to 4.9% from 3.8%. SPDR S&P Retail ETF gapped up 2.6%.
"After bolting out of the gates this year, retail spending took a breather in February, though real consumer spending still looks to advance modestly in the first quarter," said Sal Guatieri, BMO Capital Markets economist. The modest increase in February largely reflected higher prices rather than volumes.
"Though cooling after January's splurge, American consumers appear reasonably well positioned to keep spending, supported by recent massive job gains and high household savings," he added. "This assumes, of course, no further major blows to fuel and food costs, confidence, and financial conditions stemming from the Russia-Ukraine war."
