(Bloomberg) — U.S. stocks approached the all-time closing record high reached before the coronavirus pandemic, propelled by surging technology shares. Gold rebounded, the dollar weakened and Treasury yields rose to five-week highs.
The S&P 500 climbed as high as 1.5% to just below the 3,386.15 level reached on Feb. 19, adding to the more than 50% rally since the market lows in March. Ten of the benchmark index’s 11 market sectors rose Wednesday, led by technology, utilities and health care shares. The Nasdaq Composite outperformed the S&P as Apple Inc., Microsoft Corp. and Tesla Inc. jumped. In Europe, the Stoxx Europe 600 Index rose for a fourth day.
The equity rally has been “absolutely amazing, it’s done the V-shaped recovery that the economy has not,” said Barry James, portfolio manager at James Investment Research. “The stock market has just plowed right ahead.”
Treasury yields dropped from the highs of the day after the government’s sale of $38 billion in 10-year notes attracted stronger-than-forecast demand.
Silver joined gold in rebounding, as investors decided the flight from precious metals driven by advancing bond yields had gone too far.
“Gold’s dramatic fall yesterday could be attributed to a number of things not to mention the depressed dollar, but within the larger context you could argue it’s a sign of a return to bullishness,” said Chris Larkin, managing director of trading and investment product at E*Trade Financial. “The S&P 500 was knocking on the door of a new high yesterday before retreating, but today’s positive geopolitical news could provide the gas to get us there.”
After setting a new peak on Friday above $2,070 an ounce, bullion has since tumbled as much as 10%. Crude futures headed toward a five-month high in New York trading after an industry report pointed to a third straight weekly drop in American crude stockpiles.
Elsewhere, Europe’s corporate bond spreads narrowed to their tightest since early March, just a few basis points off pre-virus levels, according to a Bloomberg Barclays index.
Here are some key events coming up:
Earnings include Tencent, Cisco Systems, Swiss Life, Tui AG.China releases a slew of data for July on Friday, including industrial production and retail sales.
These are the main moves in markets:
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