Stocks rose for a second day as investor optimism got a boost from strong economic readings and earnings reports. Oil climbed.
Energy, materials and industrial shares led the S&P 500 higher. The tech-heavy Nasdaq 100 was in the green for a third day. European shares climbed on prospects of easing lockdowns and as services data signaled a recovery. Asian shares were mostly higher, although they slipped in China.
Treasury yields dropped and the dollar was little changed. Gold extended its highest level in more than four months. Bitcoin steadied after a volatile cryptocurrency slump this week.
The global economic revival, the risk of a significant pickup in inflation and Covid-19 flareups in some parts of the world continue to shape market moves. Stocks have been volatile this week, with speculative ardor cooling as minutes from the latest Federal Reserve meeting flagged the possibility of a debate at some point on scaling back stimulus measures. Still, better-than-forecast jobless claims data on Thursday buoyed sentiment.
“We believe there is still an upside story to be told,” said Mark Haefele, chief investment officer at UBS Global Wealth Management. “Beneficiaries of reflation, like financials and energy, still have ‘catch up’ potential, while the relative near-term case for mega-cap tech is less clear.”
Elsewhere, Brent oil trimmed its biggest weekly decline since March. In Europe, Cartier jewelry maker Richemont gained after posting sales that topped estimates.
Euro-area finance ministers and central bank chiefs hold an informal meeting. A larger group of EU finance ministers and central bank chiefs will meet May 22
These are some of the main moves in markets:
The S&P 500 rose 0.6% to the highest since May 10 as of 9:35 a.m. New York timeThe Nasdaq 100 rose 0.5%, climbing for the third straight day, the longest winning streak since April 9The Dow Jones Industrial Average rose 0.6%, more than any closing gain since May 14The Stoxx Europe 600 rose 0.7% to the highest since May 10The MSCI World index rose 0.5% to the highest since May 10
The Bloomberg Dollar Spot Index rose 0.1%The euro fell 0.3% to $1.2193The British pound rose 0% to the highest in more than three yearsThe Japanese yen was little changed at 108.74 per dollar
The yield on 10-year Treasuries was little changed at 1.62%Germany’s 10-year yield declined three basis points, more than any closing loss since May 4Britain’s 10-year yield declined one basis point to 0.83%
West Texas Intermediate crude rose 2.4% to $63 a barrelGold futures rose 0.2%, climbing for the seventh straight day, the longest winning streak since July 29