US Stock Market Update: JD.com, Visa, and Smartsheet Show Significant Fluctuations

Chinese tech stocks listed in the US, including Alibaba, have shown strength after China unveiled a massive economic stimulus package. JD.com, Visa, and Smartsheet were among the stocks that showed large fluctuations on the New York Stock Exchange on the 24th (local time).

JD.com, a Chinese e-commerce company, closed at $33.90, up 13.91% from the previous trading day. This surge in stock price is attributed to China’s economic stimulus package, which aims to provide 1 trillion yuan (about 189 trillion won) of long-term liquidity to the financial market.

According to CNBC, People’s Bank of China Governor Pan Gongsheng announced, “We will soon lower the reserve requirement ratio by 0.5 percentage points (p) to provide 1 trillion yuan (about 189 trillion won) of long-term liquidity to the financial market.” This move is expected to boost the economy and provide momentum going into the fourth quarter.

Lin Song, chief economist at ING, stated, “The reserve requirement rate cut is a very important move. If we see that large-scale fiscal policy is being implemented, momentum could pick up going into the fourth quarter.” Chinese technology stocks listed in the U.S. rose across the board on the news, with Alibaba up 7.88%.

Visa, a card company, fell 5.49% to $272.78 after reports of a potential lawsuit with the U.S. Justice Department. Bloomberg News reported that the U.S. Department of Justice plans to claim that Visa has illegally monopolized the U.S. debit card market. Authorities believe Visa has struck exclusive deals in the market to block competitors from expanding their networks and has blocked attempts by tech companies to enter the market.

Smartsheet, a software maker, rose 6.47% to $55.46 after announcing that Blackstone and Vista Equity have agreed to acquire the company for $8.4 billion. The all-cash deal will net shareholders $56.50 per share, which is 41% higher than Smartsheet’s average closing price over the past three months.

Mark Mader, Smartsheet CEO, stated, “We are confident that Blackstone and Vista’s expertise will help us ensure that Smartsheet remains a great company for its employees.” Other major stocks include Apple, up 0.4%, Nvidia, up 3.97%, and Tesla, up 1.71%. Meanwhile, Microsoft (MS) fell 1% and Meta, down 0.19%.