US Stock Market ends sharply higher: Dow Jones jumps 550 points, Nasdaq up 350 points; S&P 500 rallies 2.65%
Stocks were primed for a strong open after Britain's new finance minister Jeremy Hunt scrapped Prime Minister Liz Truss's proposed tax cuts and reined in her energy subsidies.
Wall Street jumped to robust gains on Monday as solid earnings and a financial policy reversal in Britain fueled risk appetite and boosted the sterling and euro against the greenback.
All three major U.S. stock indexes rallied to end the session 1.9% to 3.4% higher while and the dollar lost ground against a basket of world currencies.
"The catalysts that have triggered in the markets year-to-date are well-known," said Joseph Sroka, chief investment officer at NovaPoint in Atlanta. "Now, investors are looking for green shoots of catalysts that can start to provide some improvement."
Stocks were primed for a strong open after Britain's new finance minister Jeremy Hunt scrapped Prime Minister Liz Truss's proposed tax cuts and reined in her energy subsidies, while Bank of America Corp (BAC.N) posted consensus-beating third quarter results, having benefited from a spate of interest rate hikes from the Federal Reserve.
The Dow Jones Industrial Average (.DJI) rose 550.99 points, or 1.86%, to 30,185.82, the S&P 500 (.SPX) gained 94.88 points, or 2.65%, to 3,677.95 and the Nasdaq Composite (.IXIC) added 354.41 points, or 3.43%, to 10,675.80.
European stocks closed sharply higher on the UK's financial policy reversal.
That reversal has "lifted some clouds, but it doesn't lift the political risk," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York, who added that the new government formed by British Prime Minister Liz Truss "has caused a lot of uncertainties."
Meanwhile, the easing yuan weighed on Asian markets.
The pan-European STOXX 600 index (.STOXX) rose 1.83% and MSCI's gauge of stocks across the globe (.MIWD00000PUS) gained 2.09%.
Emerging market stocks rose 0.32%. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) closed 0.19% lower, while Japan's Nikkei (.N225) lost 1.16%.
Long-dated Treasury yields turned higher late in a choppy session for the bond market, even as investor sentiment eased in the wake of the British policy about-face.
Benchmark 10-year notes last fell 3/32 in price to yield 4.0166%, from 4.006% late on Friday.
The 30-year bond last fell 23/32 in price to yield 4.0214%, from 3.975% late on Friday.
The euro and sterling gained strength following Hunt's announced policy announcement, causing the greenback to lose ground against a basket of major world currencies.
The dollar index fell 1.02%, with the euro up 1.19% to $0.9835.
The Japanese yen weakened 0.19% versus the greenback at 149.06 per dollar, while sterling was last trading at $1.135, up 1.61% on the day.
Crude prices oscillated as markets juggled signs of looming recession and China's continued loose monetary policy.
U.S. crude settled down 0.18% to close at $85.46 per barrel, while Brent settled at $91.62 per barrel, essentially flat on the day.
Softness in the greenback gave a lift to gold prices.
Spot gold added 0.4% to $1,648.39 an ounce.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
SRH vs GT IPL 2024 Ticket Booking Online: Where and how to buy SRH vs GT tickets online - Check IPL Match 66 ticket price, other details
Top 7 SWP Mutual Funds: Rs 50 lakh investment, Rs 70K monthly pension for 10 years, and Rs 42.30 lakh balance value; know more details
Gold and Silver rate today (May 13, 2024): Precious metal under pressure; yellow metal near Rs 72,400, white metal above Rs 84,600
SIP Returns: How Rs 3,000, 5,000, and Rs 10,000 SIPs can help you build retirement corpus of Rs 1.06 cr, Rs 1.77 cr, and Rs 3.53 cr
12:32 PM IST