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Investing.com — U.S. stock markets opened higher on Tuesday, helped by rising hopes of a delayed withdrawal of monetary stimulus by the Federal Reserve and by a sharp shift in sentiment in China that also supported commodities prices.
By 9:45 AM ET (1345 GMT), the Dow Jones Industrial Average was up 55 points, or 0.2% at 35,390 points. The S&P 500 was up 0.2% and the Nasdaq Composite was up 0.4% at a new record high.
Chinese ADRs were among the stars in early trading, with Alibaba ADRs (NYSE:BABA) rising 5.3% and Pinduoduo (NASDAQ:PDD) rising 17%, as both Chinese and U.S.-based investors took to bargain hunting after a massive sell-off sparked by regulatory concerns.
Pinduoduo’s rise was all the more remarkable for the fact that the e-commerce company’s second-quarter sales grew more slowly than expected, by a mere 89%. While it turned its first-ever profit in the quarter, it said it would give this and its first 10 billion yuan ($1.5 billion) of profits away to Chinese farmers. The move suggests that the company leadership has taken on board warnings of the need to reduce inequality in the country – a realization that may spare it any heavier regulatory intervention in future.
Elsewhere, JD.com ADRs (NASDAQ:JD) were up 10.7% after reports said that Cathie Wood’s ARK Invest firm was sufficiently impressed by its second quarter results to get back into Chinese stocks, which her firm had all but exited earlier in the year. Search giant Baidu ADRs (NASDAQ:BIDU) rose 6.2% and Tencent Holdings ADRs (OTC:TCEHY) rose 7.6%, also helped by Monday’s buyback announcement.
