June 28 (Reuters) – The New York Stock Exchange opened higher on Tuesday as Chinese authorities’ decision to ease quarantine measures for foreign travelers raised hopes of a pickup in global growth.
In early trading, the Dow Jones index gained 430.78 points, or 1.37%, to 31,869.04 points and the broader Standard & Poor’s 500 rose 1.15% to 3,944.84 points.
The Nasdaq Composite took 0.95%, or 109.207 points, to 11,633.758.
The announcement in the morning of a reduction in the duration of the quarantine imposed on travelers arriving in China from abroad and the absence of new local cases of transmission of SARS-CoV-2 in Beijing and Shanghai is welcomed on global markets, with investors regaining some hope on growth prospects.
These announcements are “not enough to lead to a very strong market recovery but (..) it is a step forward,” said Hani Redha, multi-asset portfolio manager at PineBridge Investments.
The improvement in the health situation in China is also contributing to the rise in oil prices.
The oil groups Exxon Mobil and Chevron gained 2.19% and 1.84% respectively.
Shares of companies specializing in travel and leisure benefit from information on COVID-19 in China: the company American Airlines gains 5.16%, the operators of casinos Wynn Resorts 6.35%, the travel agency TripAdvisors 3.72% and the cruise line Norwegian 4.27%.
Boeing climbed 5.20%, leading the Dow Jones.