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Agencies
New York
US stocks jumped to a nine-week high as investors poured back into risk assets on speculation the worst of the economic hit from the pandemic has passed. A dollar gauge fell by the most in almost two months.
The S&P 500 rose as much as 2.2 percent as it topped 3,000 for the first time since early March. Fresh economic data showed that the easing of lockdown restrictions is boosting economic activity. The contours of the rally, with small-caps and energy shares leading, suggest investors who doubted its staying power are now targeting areas that have lagged behind so far. Large-cap tech shares, the group that lifted stocks from pandemic lows, trailed on Tuesday.
While economic data is still awful by virtually any historic comparison, a consensus among investors is building that the worst is over, easing fear that the rally was a bear trap destined to come undone. Instead, traders are concerned they’ve missed the best of the gains and are seeking returns in the riskiest corners of the market, overlooking rising tensions between Washington and Beijing and a looming earnings recession.
Elsewhere, the Stoxx Europe 600 Index rallied, with travel stocks surging on reports that Germany plans to lift travel warnings for 31 European countries. The UK also announced steps toward getting back to business, sending the pound up by the most in almost a month.
Japan led the equity advance in Asia as the world’s third-largest economy reopened, and shares rose in Hong Kong, which showed signs of stabilizing after weekend unrest. Treasuries slid after the three-day US weekend, alongside Germany’s government debt.
While investors’ spirits are being lifted by economic reopenings, there are also mounting signs that coronavirus infection rates are moderating. The Japanese government ended its nationwide state of emergency Monday, while Germany recorded a decline in the number of new virus cases. Signs that more euro area stimulus is on the way is also helping support the appetite for risk.
The euro strengthened ahead of negotiations this week on the form of a bloc-wide recovery fund. WTI crude oil advanced to around $34 a barrel on hopes the market may rebalance after historic output cuts.
New York
US stocks jumped to a nine-week high as investors poured back into risk assets on speculation the worst of the economic hit from the pandemic has passed. A dollar gauge fell by the most in almost two months.
The S&P 500 rose as much as 2.2 percent as it topped 3,000 for the first time since early March. Fresh economic data showed that the easing of lockdown restrictions is boosting economic activity. The contours of the rally, with small-caps and energy shares leading, suggest investors who doubted its staying power are now targeting areas that have lagged behind so far. Large-cap tech shares, the group that lifted stocks from pandemic lows, trailed on Tuesday.
While economic data is still awful by virtually any historic comparison, a consensus among investors is building that the worst is over, easing fear that the rally was a bear trap destined to come undone. Instead, traders are concerned they’ve missed the best of the gains and are seeking returns in the riskiest corners of the market, overlooking rising tensions between Washington and Beijing and a looming earnings recession.
Elsewhere, the Stoxx Europe 600 Index rallied, with travel stocks surging on reports that Germany plans to lift travel warnings for 31 European countries. The UK also announced steps toward getting back to business, sending the pound up by the most in almost a month.
Japan led the equity advance in Asia as the world’s third-largest economy reopened, and shares rose in Hong Kong, which showed signs of stabilizing after weekend unrest. Treasuries slid after the three-day US weekend, alongside Germany’s government debt.
While investors’ spirits are being lifted by economic reopenings, there are also mounting signs that coronavirus infection rates are moderating. The Japanese government ended its nationwide state of emergency Monday, while Germany recorded a decline in the number of new virus cases. Signs that more euro area stimulus is on the way is also helping support the appetite for risk.
The euro strengthened ahead of negotiations this week on the form of a bloc-wide recovery fund. WTI crude oil advanced to around $34 a barrel on hopes the market may rebalance after historic output cuts.
