Wall Street Higher After Biden-Xi Phone Call

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The stock markets in New York have started the Friday session positively after several days of losses. The news that President Joe Biden called his Chinese counterpart Xi Jinping sparked optimism. It was the first conversation between the two since Biden took office in late January.

 

The US president said he wanted to ensure that the “competition” between the two superpowers does not become a “conflict”.

Relations between Washington and Beijing have cooled recently. For example, there was the outbreak of the corona pandemic and the American questions about the origin of the virus. The Western criticism of the seizure of power in Hong Kong and the oppression of the Uyghurs in the Xinjiang region also caused tensions.

After the phone call, Chinese companies with a listing on Wall Street rose. For example, online stores Alibaba and JD.com, taxi company Didi Global, music streaming service Tencent Music and electric car manufacturer Nio rose to 3.2 percent.

Attention was also paid to US producer prices, which were higher than expected, but rose less than a month earlier. Producers have been raising their prices for quite some time as they deal with higher prices for raw materials and materials, labour and transportation of materials. Sellers also pass on these prices and ultimately contribute to inflation.

The Dow-Jones index was 0.4 percent higher after a few minutes of trading at 35,011 points. The broad-based S&P 500 also gained 0.4 percent to 4,511 points, and tech Nasdaq rose 0.6 percent to 15,334 points.

Tech companies such as Apple, Microsoft, Google parent Alphabet and Amazon rose to 0.8 percent. However, the heavyweights have fallen in recent days, depressing prices on the stock markets.

Supermarket chain Kroger increased sales in the second quarter and raised profit expectations for its entire fiscal year 2022. The company says it is benefiting from the continuing trend of consumers eating at home. The stock nevertheless fell more than 6 percent.

Data company Palantir won 0.5 percent. The UK government has terminated a healthcare contract with the company. Privacy activists have heavily criticized London over the Palantir deal.

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