Macau Review Hits Gaming Stocks As Wall Street Rises

US-listed Chinese stocks extended recent losses on Wednesday, as weak retail sales data pointed to a possible economic slowdown in the mainland, while a regulatory overhaul of Macau's casino industry further dampened appetite for Chinese stocks.

This follows a series of regulatory moves by Beijing against major technology firms, which has wiped out billions in market value this year.

US-based casino operators Las Vegas Sands, Wynn Resorts and MGM Resorts International slid between 1.7 percent and 6.3 percent.

"It would be tough to buy any Chinese stocks," said Chuck Carlson, chief executive of Horizon Investment Services in Hammond, Indiana. "From an investor standpoint you don't know what sector is next."

"I don't think the situation is going to get better any time soon and it's probably going to spread," he added.

Overall, US stocks closed higher on Wednesday as rising crude prices boosted energy shares and a swath of positive US data suggested inflation has crested and the economic recovery remains robust, boosting investor sentiment.

All three major US stock indexes gathered strength as the session progressed, with economically sensitive cyclicals, small-caps and transportation stocks leading the charge.

While value stocks initially held the advantage, the risk-on sentiment gained momentum through the afternoon, broadening to include growth stocks.

"Today is the first time in a while when both growth and value stocks are doing pretty well. It's been either or for much of the last few weeks and today it's both," said Carlson. "Breadth matters, and that's something investors like to see."

A host of economic data showed hints of waning inflation and an ongoing return to economic normalcy, even as supply constraints, complicated by hurricane Ida, hindered factory output.

The Dow Jones Industrial Average rose 0.68 percent, to 34,814; the S&P 500 gained 0.85 percent, at 4,481; and the Nasdaq Composite added 0.82 percent, at 15,162. (Reuters)