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Stocks Rally to Six-Week High as Big Tech Soars: Market...

Business Maverick

Business Maverick

Stocks Rally to Six-Week High as Big Tech Soars: Markets Wrap

A monitor displays Amazon.com Inc. stock information at the Nasdaq MarketSite in New York, U.S., on Tuesday, Sep. 4, 2018. Amazon.com Inc. briefly became America's second trillion-dollar company on Tuesday after adding $434 billion to its market cap this year. Photographer: Jeenah Moon/Bloomberg
By Bloomberg
12 Oct 2020 0

U.S. stocks climbed to an almost six-week high amid a rally in some of the world’s largest technology companies.

The S&P 500 extended gains into a fourth day and the Nasdaq 100 jumped as much as 4.1%, on track for its biggest advance since April. Amazon.com Inc. soared ahead of its Prime Day while Apple Inc. surged as the tech giant — whose price target was raised by RBC Capital Markets — is set to embrace 5G as one of its most significant additions to this year’s iPhones. Twitter Inc. rallied on an upgrade at Deutsche Bank, which also boosted its price estimates for other companies that derive their revenue from digital advertising such as Facebook Inc. and Alphabet Inc.

After plunging into a correction last month, the tech-heavy gauge extended its surge from this year’s lows to almost 75%. Investors have once again turned back to the companies flush with cash that can thrive if the economic recovery slows down. Prospects for a quick end to the stalemate over a new stimulus faded Monday with members of the House being told not to expect any action this week and many Senate Republicans rejecting the White House proposal for a deal.

Nasdaq 100 is on pace for best day since April

“People are going back to the trade that’s worked, and that’s the growth trade,” said Keith Gangl, a portfolio manager of Gradient Investments. “People are worried about missing out, so they are going right to the tech leaders.”

Read: Whale’s Resurfacing Shows Danger Persists in the Options Market

The hearings for the Supreme Court nomination of Judge Amy Coney Barrett began Monday in the Senate Judiciary Committee as Republicans try to cement a conservative majority on the court before the Nov. 3 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. The Treasury market was closed for a U.S. holiday.

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:

Stocks

  • The S&P 500 climbed 1.9% as of 3:30 p.m. New York time.
  • The Stoxx Europe 600 Index gained 0.7%.
  • The MSCI Asia Pacific Index advanced 0.9%.

Currencies

  • The Bloomberg Dollar Spot Index gained 0.1%.
  • The euro fell 0.1% to $1.1812.
  • The British pound climbed 0.2% to $1.3065.

Bonds

  • Germany’s 10-year yield fell two basis points to -0.55%.
  • Britain’s 10-year yield declined one basis point to 0.271%.

Commodities

  • The Bloomberg Commodity Index fell 0.6%.
  • West Texas Intermediate crude declined 2.8% to $39.47 a barrel.
  • Gold weakened 0.4% to $1,923.01 an ounce.

–With assistance from Adam Haigh, Anchalee Worrachate and Lynn Thomasson.

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