Wall Street on course for recovery – PayPal stock jumps

Frankfort, New York Some investors are returning to Wall Street, buoyed by encouraging corporate results. The Dow Jones and the broader S&P 500 were up more than 1.5 percent for the evening. The tech-heavy Nasdaq even rose more than 2.7 percent.

Investors also reacted with relief to the relatively moderate reaction of the government in Beijing to the visit of US politician Nancy Pelosi to Taiwan, said Naeem Aslam, chief market analyst at brokerage firm AvaTrade. But China will hardly let the matter rest. The People’s Republic regards Taiwan as a breakaway province.

Stock market traders were also eagerly awaiting the barometer for the mood of purchasing managers in the US service sector. A small change from the previous month would be ideal – no matter in which direction, said Jason Blackwell, chief investor at wealth advisor The Colony Group. This would indicate that the Fed’s rate hikes were working without plunging the economy into recession.