Stocks Extend Biggest Rally Since April; Oil Drops: Markets Wrap
The S&P 500 rose more than 2% and the Nasdaq 100 surged more than 4% in its best rally since April.
(Bloomberg) -- Stocks rallied globally as investors rushed back into technology and health-care firms on bets that the U.S. election results will mean no major tax hikes or regulatory changes that would derail the sectors. The dollar weakened to the lowest level in more than two years.
The S&P 500 jumped more than 1% for a fourth consecutive day and is headed for the best week since April. The tech-heavy Nasdaq 100 surged 2.6%, pushing its advance this week more than 9%. Federal Reserve officials kept interest rates near zero and made no change to asset purchases as the results of U.S. presidential and congressional elections remain uncertain.
“We’re seeing a resumption in leadership from technology,” said Tracie McMillion, head of global asset allocation strategy for Wells Fargo Investment Institute. “It appears markets really like the combination they think is most likely in terms of leadership going forward and that would be a Biden presidency with a Republican Senate.”
Vote counting continues in a handful of key states, with Democrat Joe Biden potentially needing to win just one to unseat President Donald Trump. That outcome could be accompanied by a divided legislature that is less likely to pass a multi-trillion-dollar stimulus package.
“In the short-run, the focus will remain on the prospects for a new fiscal package out of Congress, which may be possible before year-end once the election results are settled,” said Jason Pride, chief investment officer of private wealth at Glenmede. “But for now, the size, scope, and timing of that next package still remains unclear.”
The dollar retreated the most versus the euro since March. Oil declined for the first time in four sessions.
Increases in tech shares and some strong corporate results buoyed the Stoxx Europe 600 index. Uber Technologies Inc. and Peloton Interactive Inc. will release results after the close of U.S. trading.
Elsewhere, U.K. government bonds reversed an early advance as investors shifted their focus to the slower pace of debt-buying implied by the Bank of England’s new asset-purchase targets. Bitcoin climbed by more than $1,000 to over $15,000, more than doubling its value in 2020.
These are some key events coming up:
- The key U.S. non-farm payrolls report is due Friday.
- Earnings are due this week from companies including Macquarie Group Ltd. and Toyota Motor Corp. on Friday.
These are some of the main moves in markets:
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