Chinese Tech Companies Rise on Cautious Wall Street

Stock markets in New York rose slightly on Tuesday after the loss a day earlier. The Chinese technology companies listed on Wall Street were among the strongest risers due to easing concerns about social unrest in China over the strict corona measures.

 

Although China seems to be sticking to its strict corona policy, the authorities may make adjustments at a local level to calm the unrest in the country.

Chinese authorities also announced plans to increase vaccination rates among the elderly, a move seen by health experts as crucial to reopening the economy. As a result, the Chinese webshop groups Alibaba and JD.com rose to 8 percent. The Chinese internet search engine Baidu gained 6 percent, and video and gaming company Bilibili, which also reported unexpectedly good quarterly results, gained almost 19 percent.

Shortly after the start of trading, the Dow Jones index was 0.1 percent higher at 33,869 points. The broad S&P 500 rose 0.1 percent to 3,965 points, and the tech indicator Nasdaq rose 0.1 percent to 11,056 points.

Apple lost 0.4 percent. On Monday, the share fell 2.6 percent on concerns about the unrest at Apple’s largest iPhone factory in China. According to market researcher Counterpoint, the delivery time for the new iPhone 14 Pro and Pro Max has increased significantly in all markets.

UPS gained 2 percent on a Buy recommendation from Deutsche Bank. According to the analysts of the German bank, the macroeconomic concerns are now fully priced into the share price of the parcel delivery company. On the other hand, video streaming media player maker Roku fell 4.8 percent after an advisory cut by investment bank KeyBanc.

The oil companies ExxonMobil and Chevron benefited with pluses of 1.3 percent from a recovery in oil prices. This was partly due to hopes of a possible relaxation of corona measures in China, the world’s largest oil importer. Oil cartel OPEC and its allies, including Russia, are also expected to cut oil production even further to prop up prices.

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