(Bloomberg) — Technology shares led U.S. stocks higher for a third day while traders continued to bet that lawmakers are moving closer to providing more fiscal stimulus. Treasury yields were mostly flat and a dollar gauge slipped.
The S&P 500 traded near the highs of the day with the White House planning to offer a $1.8 trillion stimulus proposal. Senate Majority Leader Mitch McConnell warned earlier that it unlikely an agreement would be reached before the election. The tech-heavy Nasdaq 100 jumped more than 1% with chip maker Xilinx Inc. leaping on a report it’s in advanced talks for a $30 billion takeover by rival Advanced Micro Devices Inc.
“We’ve had this whipsaw around wondering if there will be more fiscal stimulus, which I think we desperately need to keep the economy rolling,” said Ron Temple, head of U.S. equity at Lazard Asset Management LLC.
European stocks gained as a host of companies raised outlooks, from Denmark’s drugmaker Novo Nordisk A/S to German online clothing retailer Zalando SE. Stocks fell in Spain, where the government’s cabinet met to declare a state of emergency for Madrid to control Covid-19. Italy’s 10-year bond yield fell a record low.
Investors are winding up a volatile week with a mild risk-on attitude. With Trump recuperating from Covid-19 in the final stretch of the election campaign, they’re increasingly betting a Joe Biden victory is likely. Speculation is moving now to whether Democrats will sweep Congress too and then enact massive stimulus.
Video: Stocks set for higher open as investors await updates on stimulus talks (CNBC)
“Large-scale fiscal easing will push down the value of the U.S. dollar, while giving bond yields a modest boost,” strategists led by Peter Berezin at BCA Research wrote in a note. “Non-U.S. stocks will outperform their U.S. peers. Value stocks will outperform growth stocks.”
Elsewhere, Vanguard Group Inc. returned about $21 billion in managed assets to government clients in China as part of a global shift to focus on low-cost funds for individual investors, according to people familiar with the matter.
Oil in New York is poised for a weekly gain of more than 10% with Hurricane Delta forcing operators to shut-in almost 92% of crude output in the Gulf of Mexico.
These are some of the main moves in global markets:
|The S&P 500 Index climbed 0.9% to 3,477.05 as of 12:48 p.m. New York time, the highest in more than five weeks.|
|The Dow Jones Industrial Average rose 0.6% to 28,607.77, the highest in more than five weeks.|
|The Nasdaq Composite Index increased 1.2% to 11,558.40, the highest in more than five weeks.|
|The Nasdaq 100 Index jumped 1.2% to 11,694.94, the highest in five weeks.|
|The Stoxx Europe 600 Index gained 0.6% to 370.35, the highest in more than three weeks.|
|The Bloomberg Dollar Spot Index declined 0.6% to 1,163.05, the lowest in more than three weeks on the biggest drop in six weeks.|
|The euro rose 0.6% to $1.1824, the strongest in three weeks.|
|The Japanese yen strengthened 0.3% to 105.69 per dollar, the biggest advance in more than three weeks.|
|The yield on 10-year Treasuries rose less than one basis point to 0.79%, the highest in four months.|
|The yield on 30-year Treasuries increased one basis point to 1.60%, the highest in more than four months.|
|Germany’s 10-year yield fell less than one basis point to -0.53%, the lowest in a week.|
|Britain’s 10-year yield decreased one basis point to 0.28%, the lowest in a week.|
|West Texas Intermediate crude declined 0.8% to $40.84 a barrel.|
|Gold strengthened 1.6% to $1,923.40 an ounce, the highest in three weeks on the biggest rise in six weeks.|
|Copper rose 1.4% to $3.08 a pound, the highest in three weeks.|
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