US stocks higher after Chinese market surges
U.S. stocks climbed Thursday morning, extending their recovery from a sharp sell-off that was triggered by concerns about the health of the Chinese economy.
Investors were encouraged by a surge in the Chinese stock market as the nation’s main index logged its biggest gain in eight weeks. In the U.S., a report showed that the economy expanded at a much faster pace than previously estimated in the second quarter.
The Dow Jones industrial average climbed 236 points, or 1.4 percent, to 16,518 as of 10:49 a.m. Eastern time. The Standard & Poor’s 500 index gained 29 points, or 1.5 percent, to 1,970. The Nasdaq composite rose 84 points, or 1.9 percent, to 4,786.
Markets have been volatile since China decided to weaken its currency earlier this month. Investors interpreted the move as an attempt to bolster a sagging economy.
Traders are also jittery about the outlook for interest rates. The Federal Reserve has signaled it could raise its key interest rate for the first time in nearly a decade later this year.