US stocks gain after China tells Evergrande to pay its debts and avoid default
- US stocks gained on Thursday, continuing its rebound from Monday's Evergrande-induced sell-off.
- China told Evergrande to pay its upcoming US-dollar denominated debt payments and avoid default, according to a Bloomberg report.
- At the same time, Beijing is telling local officials across the country to prepare for a "possible storm" related to the Evergrande debt crisis, The Wall Street Journal reported.
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US stocks edged higher in Thursday trades, continuing the rebound from Monday's Evergrande-induced sell-off in which the Dow Jones fell nearly 1,000 points.
The gain on Thursday came after Bloomberg reported that China told Evergrande to pay its upcoming debt payments on US-dollar denominated bonds, and to avoid default. That may be giving investors a reason for relief as the S&P 500 trades just ten points below last Friday's levels.
But longer-term, Evergrande's $300 billion debt problem isn't going away, and Beijing is warning local officials across the country to prepare for a "possible storm" related to a potential default of the country's second largest property developer, The Wall Street Journal reported.
Here's where US indexes stood shortly after the 9:30 a.m. ET open on Thursday:
- S&P 500 : 4,418.40, up 0.52%
- Dow Jones Industrial Average : 34,529.93, up 0.79% (271.61 points)
- Nasdaq Composite : 14,951.28, up 0.37%
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