Stocks rose as gains in giant technology companies drove the Nasdaq 100 toward a record, tempering concern that a recovery from the pandemic-induced recession will need more time. Treasuries climbed.
A rally in heavyweights such as Apple Inc. and Tesla Inc. offset a slide in energy producers and banks in the S&P 500. Intel Corp. — the world’s largest chipmaker — jumped on news it’s entering into accelerated agreements to buy back US$10 billion of shares. Zoom Video Communications Inc. surged after Morgan Stanley boosted its price target for the video-conferencing company. Earlier Thursday, equities slumped as applications for U.S. unemployment benefits unexpectedly increased, with initial jobless claims climbing to more than 1.1 million.
Wall Street’s obsession with the fortress-like profit potential of internet and software stocks seems to remain intact. Thanks to solid balance sheets and a suite of products that benefit from social distancing, technology companies have extended this year’s surge — the biggest among major S&P 500 groups. The industry has sustained the momentum for stocks even after a rally of more than 50 per cent from March lows and concern over stalled negotiations on further economic stimulus measures.
On the trade front, China confirmed plans to talk with U.S. officials soon to review progress on their preliminary deal — a rare engagement between the world’s largest economies as relations deteriorate. Speaking in Arizona earlier this week, President Donald Trump said he canceled those plans because he’s unhappy with the Asian nation’s role in the COVID-19 pandemic.
Here are some key events coming up:
- Euro-area PMIs will be released on Friday.
These are some of the main moves in markets:
Stocks
The S&P 500 rose 0.1 per cent as of 12:41 p.m. New York time.
The Stoxx Europe 600 Index decreased 1.1 per cent.
The MSCI Asia Pacific Index sank 1.6 per cent.
Currencies
The Bloomberg Dollar Spot Index gained 0.2 per cent.
The euro fell 0.2 per cent to US$1.1818.
The Japanese yen strengthened 0.2 per cent to 105.94 per dollar.
Bonds
The yield on 10-year Treasuries declined four basis points to 0.64 per cent.
Germany’s 10-year yield decreased three basis points to -0.51 per cent.
Britain’s 10-year yield fell two basis points to 0.214 per cent.
Commodities
The Bloomberg Commodity Index declined 0.9 per cent.
West Texas Intermediate crude decreased 2.3 per cent to US$41.95 a barrel.
Gold strengthened 0.2 per cent to US$1,932.85 an ounce.
–With assistance from Joanna Ossinger, Todd White, Cecile Gutscher, Lynn Thomasson, Katherine Greifeld, Vildana Hajric and Claire Ballentine.
Source: – BNN
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