U.S. stocks climbed to an almost six-week high amid a rally in giant technology companies as traders awaited earnings from banks and news on a fresh round of economic stimulus.
The S&P 500 extended gains into a fourth day, while the NYSE FANG+ Index of megacap tech shares rose 2.2%. Amazon.com Inc. surged before its Prime Day event, Apple Inc. jumped as its price target was raised by RBC Capital Markets while Twitter Inc. rallied after Deutsche Bank recommended buying the stock. As lenders including JPMorgan Chase & Co. and Wells Fargo & Co. report their results this week, analysts expect a slight uptick in net charge-offs with some loans souring. Energy shares underperformed as oil sank below $40 a barrel. The Treasury market is closed for a U.S. holiday.
Prospects for another round of fiscal spending remain highly unsettled after President Donald Trump pulled out of talks on Oct. 6, hours after Federal Reserve Chairman Jerome Powell urged lawmakers err on the side of doing more rather than less to help the economy heal from Covid-19. The White House subsequently proposed a new $1.8 trillion stimulus package, with Trump himself saying he wanted to go even further, and negotiations with Democrats are expected to continue this week.
“The stimulus stalemate still looms large, though it failed to derail the market,” said Chris Larkin, managing director of trading and investment product at E*Trade Financial. “And with high expectations for big-bank earnings kicking off the season, we could get a clearer picture into just how far we’ve come in terms of economic recovery.”
U.S. voters are getting their first close look at Judge Amy Coney Barrett in hearings that began Monday and are all but certain to lead to President Donald Trump’s Supreme Court nominee being placed on the high court just days before the election.
Elsewhere, oil slumped with workers in the U.S. Gulf heading back following Hurricane Delta’s landfall and Libya taking a major step toward reopening its biggest field. The offshore yuan sank after China’s central bank took steps to restrain the currency’s rally.
Here are some key events coming up:
JPMorgan, Citigroup and BlackRock report earnings on Tuesday; results from Wells Fargo, Bank of America and Goldman Sachs are due Wednesday; Morgan Stanley’s earnings are scheduled for Thursday.U.K. Prime Minister Boris Johnson set a deadline of Thursday to thrash out the outline of a European Union trade deal.European Central Bank President Christine Lagarde leads off the virtual annual meetings of the International Monetary Fund and the World Bank Group. Through Oct. 18.
These are some of the main moves in markets:
The S&P 500 climbed 0.9% as of 10:30 a.m. New York time.The Stoxx Europe 600 Index gained 0.6%.The MSCI Asia Pacific Index advanced 0.8%.
The Bloomberg Dollar Spot Index climbed 0.1%.The euro decreased 0.1% to $1.1813.The British pound was little changed at $1.3039.
Germany’s 10-year yield fell two basis points to -0.54%.Britain’s 10-year yield declined one basis point to 0.267%.
The Bloomberg Commodity Index fell 0.2%.West Texas Intermediate crude fell 2.8% to $39.47 a barrel.Gold weakened 0.3% to $1,924.35 an ounce.
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