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The S&P 500 and the Nasdaq 100 rose more than 1%, driven by gains from big names in tech including Apple Inc. and Facebook Inc. European stocks rebounded as the European Central Bank was supposed to study a new program bond purchase while emergency programs are underway. phased out. A rebound in Hong Kong-listed tech companies boosted Asian stocks.
Markets have been rocked over the past month by concerns over the energy crisis, high inflation, reduced stimulus and slower growth. The prospect of a deal to raise the US debt limit through December eases concerns over political wrangling, while Friday’s wage report could shed light on the Federal Reserve’s timetable for reducing bond purchases.
“The volatility that we’ve seen in the markets here this week, where we’re up one day, down the next day, is really a reflection of the news cycles and the different news we get,” Chris Gaffney, President of Markets global at TIAA Bank, said by phone.
Optimism is growing. Friday’s jobs report will show the kind of “decent” job growth Fed Chairman Jerome Powell said he wanted. Initial jobless claims in the United States fell more than expected last week and ADP employment numbers exceeded expectations for September.
“The weekly numbers this morning are auspicious – and the ADP numbers from yesterday – really reflect that the job market is strengthening and people are returning to work,” Gaffney said. “It certainly bodes well for the future of markets as the more people who work, the higher the expense can be as people return to work. “
On the geopolitical front, a senior U.S. official said President Joe Biden plans to meet virtually with his Chinese counterpart before the end of the year. Tensions are mounting between the two countries, with US Secretary of State Antony Blinken criticizing recent Chinese military maneuvers around Taiwan.
Oil reversed losses after the US Department of Energy said it had no plans to tap oil reserves and European natural gas prices fell on signals from Russia that it could increase supplies to the continent. The yield on the 10-year US Treasury bill rose, the dollar weakened slightly and gold fell.
For more market analysis, read our MLIV blog.
Here are some events to watch this week:
Some of the main movements in the markets:
- The S&P 500 rose 1.4% at 11:14 a.m. New York time
- The Nasdaq 100 rose 1.5%
- The Dow Jones Industrial Average rose 1.5%
- The Stoxx Europe 600 is up 1.6%
- The MSCI World index is up 1.5%
- The Bloomberg Dollar Spot Index changed little
- The euro was little changed at $ 1.1564
- The British pound rose 0.3% to $ 1.3628
- The Japanese yen was little changed at 111.46 per dollar
- The yield on 10-year treasury bills rose three basis points to 1.56%
- The German 10-year yield was little changed at -0.19%
- UK 10-year yield rose 1 basis point to 1.08%
- West Texas Intermediate crude rose 0.7% to $ 77.94 a barrel
- Gold futures fell 0.1% to $ 1,759.40 an ounce
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