• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Markets

China Stocks Soar as Investors Await the Fed

No one can deny the many obstacles the market is facing, but there are signs it has been already priced in.
By JAMES "REV SHARK" DEPORRE
Mar 16, 2022 | 07:45 AM EDT
Stocks quotes in this article: BABA, BIDU, NIO

Despite the Russian-Ukraine war, weak bonds, a surge in Covid in Asia, worries about the supply chain, the highest inflation in 40 years, and a very gloomy market environment, the S&P 500 has bounced more than 2% over the last couple of days and is gapping up to start Wednesday.

The primary news that is driving the market in the early going is that China's financial stability and development committee has recommended that regulators should "actively introduce market-friendly policies." What is particularly notable for China stocks listed in the U.S. is that the committee actively supports the listing of shares overseas and stresses good communication with the SEC.

Alibaba Group (BABA) is trading up around 16% on the news, Baidu (BIDU)  around 14%, and Nio  (NIO)  about 14%, and the whole group is flying after being pounded over the last few days.

That action is helping the mood, but the primary focus will be on the Fed interest-rate announcement at 2 p.m. ET. It is widely anticipated that there will be a hike of a quarter percent. With inflation running at almost 8%, the Fed has no choice, but the key will be the overall tone. There will be a series of hikes that follow but will the Ukraine crisis temper the hawkishness? Oil continues to fall, and that is one big positive, but what is the longer-term forecast for energy prices?

Bonds have been under pressure for a couple of weeks now as they price in higher interest rates and a more hawkish Fed. Have they already fully discounted the Fed's hawkishness?

There still is significant headline risk about Ukraine, and there will be much talk about further U.S. assistance as Ukraine President Zelensky addresses Congress. The world is largely aligned against Putin, but the great unknown is the amount of damage he is willing to do before he starts to negotiate seriously.

What is most notable about the market right now is that there is so much negative news, and everyone is aware of it. No one can deny the many obstacles that the market is facing, but there are signs that it has been already priced in and that buyers are starting to look for bargains.

The biggest bounces occur in the worst markets, and this is definitely a poor market. We can't be too trusting too soon, but a market that can handle this much negative news so well suggests that a bottom is forming.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

At the time of publication, Rev Shark was long NIO.

TAGS: Economy | Federal Reserve | Futures | Indexes | Interest Rates | Markets | Oil | Trading | Treasury Bonds | China | U.S. Equity | Coronavirus

More from Markets

The Dollar and Interest Rates Are Taking Gold for a Ride

Carley Garner
Oct 3, 2023 2:15 PM EDT

Here are the price levels to watch on the yellow metal, how seasonality is supportive now, and why what happens this week will be critical.

Costco: Are We Witnessing a Bull Trap?

Bruce Kamich
Oct 3, 2023 1:08 PM EDT

When one of the last holdouts of the S&P 500 turns down the selloff is in full gear.

Looking for Capitulation? Don't Be Fooled by Minor Market Bounces

James "Rev Shark" DePorre
Oct 3, 2023 11:45 AM EDT

The market is trying to discount the impact of higher rates, but it's extremely difficult.

The Trickiest Stock in the Market

Stephen Guilfoyle
Oct 3, 2023 11:15 AM EDT

There's a lot to like about this name, but a lot that also sows the seeds of caution.

Treasury Pressure, Magnificent Flight, AI's Good and Bad, Five-Headed Fed Punch

Stephen Guilfoyle
Oct 3, 2023 7:56 AM EDT

While the Nasdaq has posted four consecutive winning sessions, the bottom fishing that has benefited the large tech names may be growing exhausted.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 12:13 PM EDT BRUCE KAMICH

    8 Trading Rules from T. T. Hoyne

    You just read the header for this missive and prob...
  • 08:42 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    How Elite Traders Make Big Profits
  • 02:58 PM EDT BRUCE KAMICH

    Classic Trading Rules From Bernard Baruch

    Bernard Baruch listed the rules (below) in his aut...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login