Shares of industrial and transportation companies rose sharply as traders bet the economic outlook was improving in light of moderating inflation and a less aggressive Federal Reserve.
There were also hopes of improved trade relations with China. Chinese officials are making plans for Xi Jinping to visit Southeast Asia and meet face-to-face with President Biden in November, The Wall Street Journal reported, in what would mark the Chinese leader's first in-person meeting with Mr. Biden since the American leader's inauguration.
The meeting is part of a fluid and tense relationship between the world's two largest economies, said one strategist.
"At the same time, you have the delisting of some of their companies," said Quincy Krosby, chief global strategist at brokerage LPL Financial. "It's an equation that keeps changing."
With the meeting of the National Congress of the Chinese Communist Party approaching, there's a risk that Xi Jinping "may have to become more vitriolic, more nationalistic, in order to engender loyalty from the party," said Krosby.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
08-12-22 1707ET
