NEW YORK (Reuters) – Global equities gauge gained to an intraday high on Wednesday as investors looked to improve economic data and anticipate Washington would be able to provide more stimulus to support the recovery from coronavirus lockdowns .
FILE PHOTO: A man using his cell phone is silhouetted against a stock quote board outside a brokerage firm in Tokyo on February 21, 2006. REUTERS / Toru Hanai
On Wall Street, each of the three major stock indexes rose, but the gains were led by defensive sectors such as utilities as the high-tech sector paused.
Earlier data from the ADP National Employment Report showed private payrolls increased by 428,000 jobs in August, well below expectations as government aid to support workers and employers s ‘out of print. While the July data has been revised upwards, the report indicated a slowing of the labor market recovery.
Another report showed factory orders rose more than expected in July, indicating continued improvement in the manufacturing sector.
The mixed data may have fueled expectations Washington could feel pressure to reach agreement on a new stimulus act, although US House Speaker Nancy Pelosi said on Tuesday that “serious differences Remained between Democrats and the White House after a phone call with Treasury Secretary Steven Mnuchin, adding to Wall Street’s defensive tilt.
“If we think about the typical headwinds that might worry us in the ongoing stock market saga, that doesn’t get fiscal policy out of the stalemate, it could be part of it,” said Art Hogan, chief market strategist at National Securities in New York.
“No one is going to argue that the technology hasn’t had a massive run here, so taking a break for a day or two is probably very healthy,” Hogan said.
The Dow Jones Industrial Average rose 237.91 points, or 0.83%, to 28,883.57, the S&P 500 gained 24.2 points, or 0.69%, to 3,550.85 and the Nasdaq Composite added 9.57 points, or 0.08%, at 11,949.24.
While tech stocks paused in the United States, they helped put European stocks on track to break four straight days of losses. Tech stocks jumped 2.06% after rising 2.8% to their highest level in more than 19 years.
The pan-European STOXX 600 index rose 1.65% and the gauge of MSCI stocks around the world gained 0.42%. The MSCI Index hit an intraday record for a sixth consecutive day.
The dollar strengthened against a basket of major currencies for a second day in a row after more than two-year lows, as the euro retreated from the key level of $ 1.20 reached during the session former.
The dollar index rose 0.554%, with the euro down 0.6% to $ 1.1839.
The benchmark 10-year notes last rose 5/32 to a yield of 0.6559%, down from 0.671% on Tuesday night.
In commodities, oil returned to gains after a brief rebound in data showing U.S. crude and fuel inventories fell sharply in the most recent week when Hurricane Laura shut down production and facilities refining.
US crude recently fell 1.75% to $ 42.01 a barrel and Brent was at $ 44.94, down 1.4% on the day.
Reporting by Chuck Mikolajczak; edited by Jonathan Oatis
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