Dow Jones rises more than 200 points after refueling on Monday amid fears debt-laden Chinese real estate giant Evergrande is on the brink of Lehman Brothers-style collapse
- Dow Jones rose 150 points and 0.46 percent on Tuesday at 34,126.89, after closing at 33,970.47 Monday afternoon.
- S&P 500 also rose 16.77 points or 0.4 percent from 4,357.73 on the previous close to 4,374.5 opening Tuesday
- Nasdaq opened at 14,803.36 – 89.49 points higher than at 14,713.9 Monday
- All three indices plunged Monday after Chinese real estate giant Evergrande rocked Wall Street
- Dow Jones fell a whopping 489 points on Friday’s closing price 34,459.72
US stocks rose at the opening bell on Tuesday – a day after Chinese real estate giant Evergrande rocked Wall Street after debt of more than $300 billion raised fears of a Lehman Brothers-style collapse.
The Dow Jones rose more than 200 points and 0.61 percent on Tuesday at 34,179.03, closing at 33,970.47 Monday afternoon.
The S&P 500 was up 16.77 points or 0.4 percent from 4,357.73 on its previous close to 4,374.5 opening Tuesday.
Nasdaq opened at 14,803.36 – up 89.49 points or 0.6 percent from 14,713.9 that closed Monday.
All three indices plunged Monday, with the Dow Jones falling a whopping 489 points from Friday’s close of 34,459.72.
This came after Evergrande, China’s second-largest real estate developer, was on the brink of default on its billion-dollar debt.
The company has been warning for months that it doesn’t have enough business to pay off its money and its share price has fallen 80 percent this year.
The building materials industries also began to see their stock prices plummet for fear that Evergrande’s implosion would lead to a slump in demand for their goods.
Experts warned that the crisis has echoes of the bankruptcy of Lehman Brothers, which caused global and economic credit markets to collapse.
Investors tried to shake off these fears of a collapse on Tuesday, and the Federal Reserve was set to hold a monetary policy meeting on Tuesday.