The Nasdaq composite index, which has lagged the two main US market barometers, turned slightly positive for the year. Bogdanov is voicing a contrarian bull case that has prevailed since the rally began in 2009: that skepticism is a more potent fuel for stock prices because it prevents the kind of indiscriminate buying that historically has caused bubbles to burst.
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Global equities are nearly back to where they were at the time of the U.K.’s June 23 vote to leave the European Union, which wiped nearly $4 trillion off the value of the securities.
Other analysts pointed to the pound’s recovery above $1.30, thanks to the quick selection of Theresa May as Conservative leader and her taking over as prime minister on Wednesday.
Alcoa, kicking off the earnings season, reported a smaller-than-expected drop in quarterly profit. “And very quickly, in a matter of weeks, that was completely erased”.
In the Dow Jones industrial average, 16 of the 30 component stocks are up at least 10 percent between its closing high of 18,312.39 set May 19, 2015, and Friday, according to Silverblatt.
“There are no good alternatives, from an income standpoint, to the U.S. equity markets at this point, and that’s driving the momentum today”, said Bill Northey, chief investment officer at Private Client Group of U.S. Bank.
Humana and Aetna lost 2.6 percent and 0.5 percent, respectively, on worries U.S. antitrust officials will block the planned merger of the health insurers.
The Stoxx Europe 600 Index added 1.7 per cent, for a third daily advance.
The TSX was up 145.92 points at 14,405 at midday.
The move was the best one-day gain for Japanese stocks since March 2 when the benchmark rose 4.1%. Exporters led gainson Monday, with Taiwan Semiconductor Manufacturing Co. climbing to a record.
MSCI’s all-country world equity index was last up 3.77 points or 0.94 per cent at 404.76. Before the payrolls figures, a report Wednesday showed service providers expanded in June at the fastest pace in seven months and Fed minutes indicated less urgency in the need to raise interest rates.
The yen weakened on the mounting stimulus expectations, with the dollar recently up 2.2% against the yen to ¥ 104.8730.
West Texas Intermediate slid 1.4% to settle at US$46.21 a barrel, a two-month low. France’s CAC 40 gained 1.8 percent, while Germany’s DAX climbed 2.1 percent. Still, the index has mostly been rising since February.
The Bloomberg Commodity Index rose 0.5 per cent, rebounding from a 3.7 per cent weekly loss that marked its steepest slide since January.
Encouraging election results out of Japan shot the Dow Jones Industrial Average (DJIA) higher at the open, and stocks didn’t look back. At 11:13 a.m. Eastern Time the S&P reached an intraday high of 2,140.53 compared to the May 2015 high of 2,134. Based on the performance during the first 10 trading days of 2016, it was the worst start to the year for the venerable index.
Similar-maturity debt in Japan yielded minus 0.27 per cent, after the rate touched an all-time low of minus 0.30 per cent on Friday. The robust jobs report will go a long way towards reducing US recession fears on Wall Street, economists said.
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In other energy trading in NY, wholesale gasoline rose one cent to 1.38 U.S. dollars a gallon, heating oil was flat at 1.42 USA dollars a gallon and natural gas dropped 10 cents, or 3.5%, to 2.70 United States dollars.
