Wall Street inched higher on Tuesday, with the Nasdaq 100 outperforming other major indices, while cyclical sectors linked to metals and industrial commodities saw strong gains, fueled by a surprise stimulus package from China’s central bank.

The People’s Bank of China (PBOC) unveiled a series of aggressive measures, including cuts to the reserve requirement ratio (RRR) for banks and a reduction in the seven-day repo rate, following a recent cut to the 14-day reverse repo rate. These moves are expected to inject roughly $140 billion (1 trillion yuan) into the banking system, providing banks with additional liquidity to boost lending.

Chinese equities skyrocketed on the news, with the iShares China Large-Cap ETF FXI soaring over 8%, marking its largest single-day gain since March 2022.

Commodities followed suit with copper and silver climbing more than 3% each, while gold rose 0.7%, hitting record highs for the fourth consecutive session.

The Nasdaq 100 posted a 0.5% gain, leading U.S. indices, while the S&P 500 remained nearly flat, hovering just shy of its all-time highs.

The U.S. dollar weakened by 0.4% following a lower-than-expected September consumer confidence report from the Conference Board. This data has bolstered expectations for a potential 50-basis-point rate cut by the Federal Reserve in November.

Treasury yields fell on short-term maturities, while longer-dated yields held steady. Oil prices climbed 1.2%, though concerns about U.S. demand lingered due to the disappointing consumer confidence figures.

Bitcoin BTC/USD slipped 0.2% failing to join the China-led rally across other risk assets.

According to Benzinga Pro data:

• The SPDR S&P 500 ETF Trust SPY rose 0.1% to $570.49.
• The SPDR Dow Jones Industrial Average DIA flattened at $420.90.
• The tech-heavy Invesco QQQ Trust Series QQQ rose 0.6% to $485.85.
• The iShares Russell 2000 ETF IWM stalled at $220.69.
• The Materials Select Sector SPDR Fund XLB outperformed, up 1.2%. The Financial Select Sector SPDR Fund XLF lagged, down 1.2%.

• Chinese stocks rallying Tuesday included Tencent Music Entertainment Group – ADR TME up 14%, JD.com Inc. JD up over 10%, PDD Holdings Inc – ADR PDD up 10%, XPeng Inc – ADR XPEV up 9%, NIO Inc – ADR NIO up 8.7% and Li Auto Inc. LI up 9%.
• NVIDIA Corp. NVDA rallied nearly 4% amid rising growth prospect in China.
• Materials stocks showing the largest gains were MP Materials Corp. MP up 10%, Freeport McMoRan Inc. FCX up 7.5%, Alcoa Corp. AA up 7.6%, and Southern Copper Corp. SCCO, up 7.3%.

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