(Bloomberg) — U.S. stocks rose for a third day, though the surge in megacap tech shares wobbled, on speculation Congress will agree to a fresh relief package and a rally in oil. The euro rose to the strongest versus the dollar since 2019 after European leaders clinched a rescue deal.
The S&P 500 added to its highest level since late February, with corporate earnings and positive vaccine news boosting sentiment that has powered an 8% rally since June 26. Four shares advanced for every one that fell. IBM Corp. jumped after sales topped forecasts. United Airlines and Texas Instruments report after the close. Oil’s surge lifted Exxon Mobil and Chevron in the Dow Jones Industrial Average.
Risk assets remained in demand across the globe Tuesday, spurred by Europe’s 750 billion-euro ($860 billion) stimulus package that also tightens the region’s financial ties. A gauge of risk in Europe’s investment-grade debt dropped to the lowest since February and the shared currency was flat. The dollar fell and oil rose above $42 a barrel in New York.
The Nasdaq 100 edged lower after closing at an all-time high, with investors awaiting a spate of megacap tech earnings later this week. The gauge has surged 25% in 2020, in large part to a meteoric advance in Amazon.com Inc., which added $117 billion to its market value just on Monday.
Nasdaq 100 Momentum Is Hottest in 20 Years on Amazon: Chart
“The market, particularly tech stocks, is rallying on both good news and bad news, that tells us it’s all about momentum and not about the facts,” said Michael McCarthy, chief market strategist at CMC Markets Asia Pacific Pty. “There are concerns we could see significant pullbacks before we make further gains, but at the moment you can’t stand in front of the train that is the Nasdaq 100 Index.”
Here are some key events coming up:
Quarterly earnings gather steam, with reports due from Microsoft, Blackstone Group, Roche, Intel, Unilever, Canadian Pacific, Tokyo Steel, Daimler, Hyundai and Mattel.The EIA crude oil inventory report is due Wednesday.U.S. weekly jobless claims come on Thursday.
These are the main moves in markets:
The S&P 500 Index rose 0.7% as of 1:47 p.m. New York time.The Nasdaq 100 Index was down 0.7%.The Stoxx Europe 600 Index increased 0.3%.The MSCI Emerging Market Index increased 2.2%.
The Bloomberg Dollar Spot Index declined 0.8%.The euro rose 0.5% to $1.1514.The British pound gained 0.7% to $1.2744.The Japanese yen strengthened 0.5% to 106.75 per dollar.The South Korean Won strengthened 0.5% to 1,197.75 per dollar.
The yield on 10-year Treasuries slipped to 0.5987%.The two-year rate fell to 0.139%Germany’s 10-year yield rose less than one basis point to -0.46%.Britain’s 10-year yield dipped less two basis points to 0.136%.
West Texas Intermediate crude increased 2.1% to $41.65 a barrel.Silver strengthened 5.2% to $20.94 per ounce.Iron ore rose 1.9% to $108.02 per metric ton.
(Corrects second paragraph to show revenue, not revenue forecasts, beat estimates.)
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