Wall Street’s main indexes rose on Tuesday as gains in Walgreens and Best Buy helped investors assuage worries around the economic fallout of stricter COVID-19 curbs in China.
Dow component Walgreens Boots Alliance (NASDAQ:WBA) Inc rose 1.9% after Cowen & Co upgraded the drug distributor stock, citing its healthcare services business push.
Best Buy Co Inc (NYSE:BBY) soared 9.4%, rising the most among S&P 500 components after forecasting a smaller-than-expected drop in annual sales.
The retailer said top-end iPhone 14 models could be in short supply during the holiday season. Earlier this month, Apple Inc (NASDAQ:AAPL) lowered shipment forecast for its premium models due to lower production at supplier Foxconn’s Zhengzhou factory, which has been hit by lockdowns in China.
Shares of Apple dipped 0.1%, weighing on the tech-heavy Nasdaq index.
Markets were cautious as China strengthened its fight against COVID-19 with Beijing shutting parks, malls and museums, while other cities resumed mass testing.
“The markets are moved by China again. Dynamic zero COVID again,” said Thomas Hayes, chairman at Great Hill Capital in New York.