Stocks - Wall Street Bounces Back as Yuan Steadies - Investing.com

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Investing.com – Wall Street bounced back on Tuesday as China steadied the yuan, one day after markets suffered their worst percentage drop of the year.

The People’s Bank of China fixed the higher than expected after letting it slump on Monday in a move seen as a response to U.S. import tariffs.

The U.S. Treasury Department labeled China a "currency manipulator" on Monday night, ending any hope of a quick resolution to the trade war and indirectly putting pressure on the two countries' central banks to support their economies with looser monetary policy.

"This trade spat is going away no time soon, but we should see central bank easing bets rise globally and that will help limit some of the market carnage over the next couple of weeks," said Edward Moya, senior market analyst at Oanda in New York.

The rose 177 points or 0.7% by 9:46 AM ET (13:46 GMT), while the was up 23 points or 0.8% and the rose 87 points or 1.1%.

Technology companies were higher after the morning bell, reflecting their large exposure to the Chinese market.

Tesla (NASDAQ:) rose 1.1%, while Intel (NASDAQ:) gained 1.4% and Apple (NASDAQ:) jumped 2%.

Walt Disney (NYSE:) was up 1% ahead of its earnings report after the market close, while Take-Two (NASDAQ:) Interactive surged 8.3% after beating estimates on its bottom and top line.

Shake Shack (NYSE:) was up 5% after its second-quarter results came in higher than forecast, and Aurora Cannabis (NYSE:) jumped 14.3% after it said it expects cannabis sales to rise in its fiscal fourth quarter.

Dean Foods (NYSE:) slumped 28.4%, suffering from an "accelerated" customer switch away from traditional white milk. It said it now expects annual cash flow to be negative, having previously forecast it to be stable to positive this year.

In commodities, rose 0.5% to $54.95 a barrel while was flat at $1,476.95 a troy ounce. The , which measures the greenback against a basket of six major currencies, rose 0.2% to 97.518.

-Reuters contributed to this report

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August 06, 2019 at 08:49PM