Why Alibaba, JD.com, and Bilibili Were Surging Higher Today
Shares of Alibaba (NYSE: BABA), JD.com (NASDAQ: JD), and Bilibili (NASDAQ: BILI) rose strongly Tuesday, up 6.6%, 6.6%, and 9.3%, respectively, as of 1:51 p.m. ET, during a relatively flat session for U.S. markets.
Like other risk assets, Chinese stocks sold off hard over the past few days. However, they have generally been faring better than U.S. tech stocks as of late. This is largely because they had already crashed last year amid Beijing's regulatory crackdown. However, with Chinese authorities signaling the end of that crackdown, investor optimism about the reopening of major Chinese cities from their latest pandemic-driven lockdowns, and an easier fiscal environment, Chinese stocks were back on the upswing Tuesday.
On Friday, a worse-than-anticipated rise in the U.S. Consumer Price Index stoked investors' fears that the Federal Reserve may hike interest rates faster and harder than was previously expected. This was followed up Tuesday by a Producer Price Index report that showed a 10.8% year-over-year rise in May. Although that was one-tenth of a percentage point lower than April's increase, it's still a very high number, indicating that inflation may not moderate any time soon.
Source Fool.com
