The index gained more than seven points Monday, nearly 3 and-a-half percent, to finish at 2137.16 – surpassing the previous record of 2130.82. But some investors think the worst is over as oil prices stabilise, the jobs market strengthens and consumers start spending more. The three indexes have risen in double-digit percentages this year.
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Shares across the world are rising on speculation policy makers will act to stem any fallout from the United Kingdom decision to leave the European Union, with the Bank of England tipped to cut rates this week. The S&P 500. SPX was up 11.91 points, or 0.56 percent, at 2,141.81. While the probability of a Federal Reserve interest-rate increase by December has risen to around 29% following a stronger-than-expected USA jobs report, it’s still less than the 44% chance the day before the Brexit vote.
The next test of market strength will come over the next few weeks as US companies report their second quarter revenue and profits.
At Monday’s close, the Dow Jones Industrial Average gained 80 points at 18,227, the S&P 500 rose 7 points to 2,137, the Nasdaq was up 32 points at 4,989, and the Russell 2000 advanced 13 points to 1,190.
Investors will also be keeping an eye on oil, which settled 65 cents lower at $44.76 a barrel, even though its weakness on Monday appeared not to hold back stocks.
This week marks the start of a flood of second-quarter earnings from S&P 500 components.
A rate cut could undermine the sterling’s dwindling yield attraction among major currencies and push it further, possibly below its 31-year low just under $1.28 hit on July 6.
SEAGATE SURGE: Seagate Technology surged $5.18, or 22 percent, to $29.27 after forecasting strong sales. In Europe, France’s CAC 40 rose 1.6 percent and Germany’s DAX added 1.3 percent.
The US dollar index traded about 0.25% higher, with the euro near $1.106 and the yen around 2% lower against the greenback. Britain’s FTSE 100 was flat.
Benchmark Brent crude LCOc1 and USA crude CLc1 prices hit two-month lows of $45.90 a barrel and $44.53 a barrel, respectively, pressured by increasing Canadian products, a higher US oil rig count and cuts in bullish hedge fund bets on crude.
Shares of Nintendo jumped 12.7 percent in Tokyo, fueled by the craze for “Pokemon Go”, a smartphone game that’s become the top grossing app in the iPhone store less than a week after its release in the U.S., Australia and New Zealand. The yield on the 10-year Treasury note rose to 1.48 percent from 1.43 percent on Monday. In Hong Kong, the Hang Seng Index added 0.80% and in China, the Shanghai Composite Index rose 0.86%. Brent crude, a standard for worldwide oil prices, rose 14 cents to $46.39 a barrel in London.
As shares rose, so, too, did government bond yields after falling to recent record lows.
The U.S. dollar hit its highest level in more than two weeks against the yen of 104.65 yen on the global risk appetite and anticipation of more Japanese stimulus.
MSCI’s all-country world equity index was last up 4.16 points, or 1.04 per cent, at 405.15.
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Gold fell $1.80 to $1,356.60 an ounce, silver rose 2 cents to $20.30 an ounce and copper rose 3 cents to $2.15 a pound.
