US stocks gain the most in almost 4 weeks; yields increase

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US stocks closed at the highest level of the day, with optimism that President Donald Trump will be discharged from hospital and lawmakers will move closer to providing more stimulus. Treasury yields jumped and the dollar weakened.The S&P 500, the Nasdaq Composite and the Dow Jones Industrial Average all rebounded from Friday’s faint following Trump’s disclosure of the coronavirus. Regeneron Pharmaceuticals Inc. rallied after Trump received an experimental antibody treatment made by the drugmaker. Shares of energy, health care and technology were the biggest gainers in the S&P, pushing the benchmark higher in nearly four weeks.

“The fiscal stimulus continues to be a wild card for the market, and the uncertainty around the president’s health is certainly significant,” said Chris Larkin, managing director of trading and investing products at E * Trade Financial. “So while there is a lot of noise out there, experienced traders may find bullish opportunities. ”

Trump said on Twitter that he would be leaving Walter Reed Hospital on Monday evening after being treated since Friday for COVID-19. Less than a month before election day, Trump’s hospitalization rocked the presidential campaign, forcing him to abandon rallies and other events as polls show him behind Joe Biden nationally and in swing states .

On the stimulus front, Trump tweeted from the hospital that a deal needs to be struck. House Speaker Nancy Pelosi was optimistic Friday about the possibility of drafting a bipartisan stimulus bill.

“With no vaccine breakthrough, we are in an economy that is recovering modestly from the lows of March and April, but it can only go so far,” said Tom Hainlin, national investment strategist at Ascent Private Wealth Group of US Bank Wealth Management. “Sectors of the economy that are vulnerable still feel the pain. That is why we need so much stimulus from the Federal Reserve and Congress. ”

Traders also pointed to polls suggesting a stronger lead for Biden and the possibility that a clear winner will emerge from the November 3 election. US markets have been nervous in recent weeks over a close election and the risk of a long and messy legal battle.

Elsewhere, consumer firms and banks led a large advance among European equities. Asian stocks posted gains, while crude oil rebounded from a three-week low and gold moved higher.

Here are the main movements in the markets:

Stocks

The S&P 500 Index climbed 1.8 percent to 3,408.56 at 4:01 p.m. New York time, the highest in a month on the largest increase in nearly four weeks.
The Dow Jones Industrial Average jumped 1.7 percent to 28,148.18, the highest for more than a month on the biggest jump in nearly 12 weeks.
The Nasdaq Composite Index climbed 2.3 percent to 11,332.48, the highest in more than a month on the biggest increase in nearly four weeks.
The Nasdaq 100 index rose 2.3% to 11,509.06, the largest increase in more than a week.
The Stoxx Europe 600 index rose 0.8 percent to 365.63, the highest in more than two weeks on the strongest advance in one week.

Devises

The Bloomberg Dollar Spot Index fell 0.4 percent to 1,169.13, the lowest in more than two weeks on the largest decline in more than five weeks.
The Japanese yen depreciated 0.5 percent to 105.77 per dollar, the weakest in more than three weeks on the steepest decline in five weeks.
The euro climbed 0.6 percent to US $ 1.1783, the strongest in more than two weeks.

Obligations

The yield on 10-year treasury bills climbed seven basis points to 0.78 percent, the highest in nearly four months on the largest increase in a month.
The yield on 30-year Treasuries climbed nine basis points to 1.58 percent, reaching the highest in nearly four months in its sixth consecutive gain and the largest increase in a month.
Germany’s 10-year yield rose three basis points to -0.51 percent, the highest in more than a week on the biggest gain in more than three weeks.
Britain’s 10-year yield rose four basis points to 0.288 percent, the highest in nearly five weeks.

Basic products

West Texas Intermediate crude jumped 6.2 percent to US $ 39.36 a barrel, the biggest jump in 20 weeks.
Gold rallied 0.6% to US $ 1,911.48 an ounce, the two-week high.
Copper fell 0.4 percent to US $ 2.97 a pound.



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