• Tue. Feb 7th, 2023



Tech Propels Stocks to Third Straight Day of Gains: Markets Wrap

(Bloomberg) — Technology shares led U.S. equities higher in the wake of this week’s deals activity and data suggesting the global economic recovery is gaining traction. The dollar fluctuated, while crude oil edged higher.


Load Error

The S&P 500 rose for a third day, with nine of the benchmark’s 11 market sectors gaining. Tesla Inc., Apple Inc. and Nvidia Corp. pushed the Nasdaq Composite higher after the index’s worst week since March.

“We’re seeing more conviction, and sentiment is improving on economic data, merger activity, vaccine news,” said Yousef Abbasi, global market strategist at StoneX.

In Europe, Hennes & Mauritz AB led a rally among fashion retailers after beating profit estimates. Investors in Germany unexpectedly raised their expectations for the country’s economy. The offshore yuan climbed to the highest level in a year and stocks in Shanghai advanced on evidence that China is accelerating out of the virus slump.

a screenshot of a cell phone: Retail Recovery

© Bloomberg
Retail Recovery

Investors are awaiting the Federal Reserve’s policy meeting Wednesday to gauge the outlook for markets following a slide of about 2% in global stocks this month. The Fed is expected to maintain its dovish stance after earlier saying it will shift to a more relaxed approach on inflation. Central bank largesse is shoring up sentiment in the face of risks from the pandemic, the U.S. presidential election and the possibility of a no-deal Brexit.

“People are willing to go back in, buy the dip because they feel like the Fed is there to backstop them,” said Jerry Braakman, chief investment officer of First American Trust in Santa Ana, California, which has around $2 billion in assets under management.

Elsewhere, the Australian dollar led an advance among Group-of-10 currencies against the greenback after the central bank’s latest minutes showed it didn’t plan to ease further anytime soon.

Here are some key events coming up:

Wednesday sees the FOMC policy decision and news conference from Chair Jerome Powell.Bank of Japan, Bank Indonesia and Bank of England policy decisions come Thursday.Friday sees quadruple witching — the quarterly expiration of futures and options on indexes and stocks — in U.S. markets

These are the main moves in markets:


The S&P 500 Index gained 0.7% to 3,407.25 as of 2:28 p.m. New York time, the highest in more than a week.
The Dow Jones Industrial Average climbed 0.3% to 28,076.68, the highest in more than a week.
The Nasdaq Composite Index rose 1.3% to 11,201.15, the highest in more than a week.
The Stoxx Europe 600 Index increased 0.7% to 370.96, the highest in almost two weeks.


The Bloomberg Dollar Spot Index was little changed at 1,165.65.
The euro dipped 0.2% to $1.1848, the first retreat in a week.
The Japanese yen appreciated 0.2% to 105.47 per dollar, the strongest in more than two weeks.


The yield on 10-year Treasuries increased less than one basis point to 0.68%.
Germany’s 10-year yield climbed less than one basis point to -0.48%.
Britain’s 10-year yield gained two basis points to 0.217%.


West Texas Intermediate crude rose 2.8% to $38.30 a barrel, the highest in more than a week.
Gold weakened 0.1% to $1,954.85 an ounce.
Copper dipped 0.4% to $3.05 a pound.

For more articles like this, please visit us at bloomberg.com

©2020 Bloomberg L.P.

Continue Reading

Source Article