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(Bloomberg) -- U.S. stocks headed for the biggest gain in two months amid a rally in technology shares and rising odds of corporate tax cuts. Treasuries fell and the dollar traded little changed.
The S&P 500 Index rose within 0.5 percent of a record, while results from Cisco Systems Inc. boosted tech shares and earnings from Wal-Mart Stores Inc. spurred consumer staples. Equities in Europe and Japan halted the longest slumps in a year. A slide in commodities eased following an injection of cash by China’s central bank into its financial system. Treasury yields pushed higher following two sessions of declines.
Chances American firms will get a tax break appeared to improve after Republican Senator Ron Johnson, who had declared his opposition to the Senate’s tax plan, said he is optimistic his concerns can be addressed. The House passed its version of the bill Thursday.
Investors seem to be regaining their appetite for risk after several days of global declines in stocks and high-yield credit that had many questioning whether the selloff could become a rout. Volatility measures have been climbing since the record high reached last week in equities gave way to days of decline. Global growth remains resilient and earnings forecasts strong, despite uncertainty surrounding U.S. tax overhaul, the path for China’s economy, and the U.K.’s exit from the European Union.
“It looks like (tax reform) will get done, but I think people get more emotional about it than they should,” Joe “JJ” Kinahan, chief market strategist at TD Ameritrade, said by phone. “At the end of the day, earnings drive the market, earnings have overall been good.”
Terminal users can read more in our Markets Live blog.
Here are some key events slated for the remainder of this week:
- A string of Fed appearances may further illuminate the FOMC’s commitment to a December hike.
And these are the main moves in markets:
- The S&P 500 Index gained 0.9 percent to 2,586.95 as of 3:07 p.m. in New York, on track for the largest gain since Sept. 11.
- The Dow Jones Industrial Average advanced 200 points to 23,470.
- The Nasdaq Composite Index rose 1.4 percent, touching a record.
- The Stoxx Europe 600 Index advanced 0.8 percent, the first advance in more than a week.
- The MSCI All-Country World Index gained 0.8 percent.
- Germany’s DAX Index rose 0.6 percent.
- The MSCI Emerging Market Index surged 1.5 percent.
- The Bloomberg Dollar Spot Index dipped less than 0.1 percent.
- The euro fell 0.2 percent to $1.1769, the biggest decrease in more than a week.
- The Japanese yen dropped 0.1 percent to 112.96 per dollar.
- The British pound climbed 0.1 percent to $1.3182, the strongest in more than two weeks.
- The yield on 10-year Treasuries rose four basis points to 2.36 percent.
- Britain’s 10-year yield gained two basis points to 1.309 percent.
- The Bloomberg Commodity Index fell 0.4 percent.
- West Texas Intermediate crude decreased 0.4 percent to $55.11 a barrel.
- Gold rose less than 0.1 percent to $1,278.54 an ounce.
--With assistance from Eddie van der Walt and Sarah Ponczek
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