(Bloomberg) -- U.S. stocks climbed to a more than a one-month high amid optimism about progress in developing a vaccine for coronavirus. The dollar weakened and crude oil increased.
The S&P 500 gained 0.9%, briefly drifting back into positive territory for the year. Varying reports on trade tensions between the U.S. and China buffeted shares. The tech-heavy Nasdaq 100 swung between gains and losses all day before closing in the green as some investors rotated into value shares. The Federal Reserve said the economy showed signs of a nascent recovery at the beginning of July.
“The virus vaccine is inspiring more bullish emotions,” said Michael Zigmont, Head of Trading & Research at Harvest Volatility Management LLC. “Forget valuations, forget earnings, forget economic news.”
Moderna Inc. surged to a record after the drugmaker reported promising trial results. AstraZeneca Plc rose on optimism about its vaccine efforts. The vaccine developments brought a rush of optimism to financial markets that have struggled to make headway recently in the face of new outbreaks across the U.S. and Asia.
Betting on Value Recovery Is Proving a Long Wait: Taking Stock
“”These are obviously some very encouraging developments, particularly on the Covid front,”said Candice Bangsund, portfolio manager of global asset allocation at Fiera Capital Corp. “This has allowed markets to continue thriving even despite rising cases throughout the U.S and has helped to counter ongoing U.S.-China trade tensions.”
President Donald Trump has indicated to aides that he doesn’t want to further escalate tensions with Beijing, and has ruled out additional sanctions on top officials for now, according to people familiar with the matter. China reportedly summoned the U.S. ambassador regarding the Hong Kong Autonomy act signed Tuesday by Trump.
Elsewhere in markets, oil gained after a report pointed to a drop in U.S. crude stockpiles. Atlantia SpA surged 25% as Italy’s government moved to resolve a long-running dispute linked to a 2018 bridge collapse.
In Asia, shares in Hong Kong underperformed, while those in Shanghai fell amid signs policy makers are uneasy over the pace of recent gains.
Here are some key events coming up:
China releases second-quarter GDP on Thursday as well as key economic indicators for June.The European Central Bank meets to set monetary policy on Thursday, with President Christine Lagarde holding a virtual press conference afterward.
These are some of the main moves in markets:
For more articles like this, please visit us at bloomberg.com
Subscribe now to stay ahead with the most trusted business news source.
©2020 Bloomberg L.P.