Feedback
Business

Dow Adds Nearly 400 Points, Rebounding From Awful September Start

U.S. stocks jumped 2 percent on Tuesday, bouncing back from steep losses last week amid a China-fueled rebound in global equities.

The Dow Jones industrial average rose nearly 390 points, or 2.42 percent, to 16,492, the S&P 500 gained 48 points, or 2.5 percent, to 1,969, and the Nasdaq Composite added 128 points, or 2.73 percent, to 4,812.

U.S. stocks tumbled more than 1 percent on Friday, weighed down by uncertainty about the timing of a U.S. rate hike and China growth concerns.

Data released earlier on Tuesday showed that China's dollar-denominated exports declined by 5.5 percent year-on-year in August, while imports tumbled 13.8 percent.

In Asia, Japan's blue-chip Nikkei stock index closed down 2.4 percent and move into negative territory for the year, as the weak trade numbers fueled concerns about demand for Japanese exports from China.

China's Trade Picture Remains Grim in August

Still, Hong Kong's Hang Seng index ended up 3.28 percent and the Shanghai Composite closed almost 3 percent higher, as both brushed aside the soft data on reports that railway projects worth almost $11 billion have been approved.

Volatility in Chinese stock markets in recent months has been a key theme for global markets as investors assess the scale of a slowdown in the world's second-largest economy.

"Chinese trade data added to the doom and gloom surrounding the world's second largest economy over night," Craig Erlam, a senior market analyst at currency trading firm OANDA, said in a note.

"While the overall trade surplus was just shy of its record, the underlying figures were very disappointing and pointed to slowing demand, both domestically and from abroad," he said.

Meanwhile, the Federal Reserve reported just before the markets closed that U.S. consumer borrowing climbed by $19.1 billion in July, pushing the total to a record $3.45 trillion.

Jobs Report Seen as Pushing Fed to Hike Rate This Month: Economists

U.S. markets are expected to remain focused on the outlook for a U.S. interest rate rise. Friday's key jobs data for August was seen by many analysts as strong enough to trigger a move from the Fed, which meets next week.