U.S. stocks closed at the highest levels of the day amid optimism that President Donald Trump will leave the hospital and lawmakers will move closer to providing more stimulus. Treasury yields jumped and the dollar weakened.
The S&P 500, Nasdaq Composite and Dow Jones Industrial Average all rebounded from Friday’s swoon in the wake of Trump’s coronavirus disclosure. Regeneron Pharmaceuticals Inc. rallied after Trump was given an experimental antibody treatment made by the drugmaker. Energy, health care and technology shares were the biggest gainers in the S&P, pushing the benchmark index up by the most in almost four weeks.
“Fiscal stimulus continues to be a wild card for the market, and uncertainty around the health of the president certainly looms large,” said Chris Larkin, managing director of trading and investment product at E*Trade Financial. “So while there’s a lot of noise out there, experienced traders may find bullish opportunities.”
Trump said on Twitter that he’ll leave Walter Reed hospital Monday evening after being treated since Friday for COVID-19. With less than a month until Election Day, Trump’s hospitalization has jolted the presidential campaign, forcing him to scrap rallies and other events as polls show him trailing Joe Biden nationally and in swing states.
On the stimulus front, Trump tweeted from the hospital that a deal needs to get done. House Speaker Nancy Pelosi was optimistic on Friday that a bipartisan stimulus bill can be done.
“Absent of vaccine breakthrough, we’re in an economy that is modestly recovering from the lows of March and April, but it can only go so far,” said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management’s Ascent Private Wealth Group. “Areas of the economy that are susceptible are still feeling the pain. That’s why we need so much stimulus from the Federal Reserve and Congress.”
Traders also pointed to polls suggesting a stronger lead for Biden and the possibility that a clear winner will emerge from the Nov. 3 election. U.S. markets have been nervous in recent weeks about a close election and the risk of a long and messy legal battle.
Elsewhere, consumer companies and banks led a broad advance among European stocks. Equities in Asia notched gains, while crude oil rebounded from a three-week low and gold advanced.
These are the main moves in markets:
Stocks
The S&P 500 Index climbed 1.8 per cent to 3,408.56 as of 4:01 p.m. New York time, the highest in a month on the largest increase in almost four weeks.
The Dow Jones Industrial Average surged 1.7 per cent to 28,148.18, the highest in more than a month on the biggest jump in almost 12 weeks.
The Nasdaq Composite Index climbed 2.3 per cent to 11,332.48, the highest in more than a month on the largest increase in almost four weeks.
The Nasdaq 100 Index gained 2.3 per cent to 11,509.06, the biggest rise in more than a week.
The Stoxx Europe 600 Index rose 0.8 per cent to 365.63, the highest in more than two weeks on the largest advance in a week.
Currencies
The Bloomberg Dollar Spot Index sank 0.4 per cent to 1,169.13, the lowest in more than two weeks on the biggest dip in more than five weeks.
The Japanese yen depreciated 0.5 per cent to 105.77 per dollar, the weakest in more than three weeks on the largest decrease in five weeks.
The euro climbed 0.6 per cent to US$1.1783, the strongest in more than two weeks.
Bonds
The yield on 10-year Treasuries climbed seven basis points to 0.78 per cent, the highest in almost four months on the largest surge in a month.
The yield on 30-year Treasuries climbed nine basis points to 1.58 per cent, reaching the highest in almost four months on its sixth straight advance and the biggest surge in a month.
Germany’s 10-year yield increased three basis points to -0.51 per cent, the highest in more than a week on the largest climb in more than three weeks.
Britain’s 10-year yield rose four basis points to 0.288 per cent, the highest in almost five weeks.
Commodities
West Texas Intermediate crude surged 6.2 per cent to US$39.36 a barrel, the largest jump in 20 weeks.
Gold strengthened 0.6 per cent to US$1,911.48 an ounce, the highest in two weeks.
Copper declined 0.4 per cent to US$2.97 a pound.
Source: – BNN
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