Stocks climb to records with tech leading advance
U.S. stocks notched fresh records with tech shares in the lead as investors snapped up work-from-home winners.
Zoom Video Communications led a rally in companies well positioned for stay-at-home orders, while Apple pulled the S&P 500 Index to a fresh high after August's blowout gain. The dollar erased losses as data showed U.S. manufacturing expanded last month at the fastest pace since 2018. Treasury yields dipped.
Stocks have churned ever higher as investors anticipate a flood of cash coming into the market, with last week's announcement from the Federal Reserve that the central bank will maintain an easy-money policy adding fuel to the trade. Meanwhile, Chinese factory data Tuesday signaled rising global demand for exports after the initial shock of the pandemic, a good sign for the world economy.
"The big theme right now is the unrelenting, record-breaking rally in tech stocks," said Candice Bangsund, portfolio manager of global asset allocation at Fiera Capital Corp. "The landscape for stocks is great but there's still, from a macro perspective, a lot of unknowns as to the progression of the virus and, of course, the implications for global growth."
Oil climbed toward $43 a barrel as the pickup in economic activity in the U.S. and China signaled a pronounced recovery in crude consumption.
The Stoxx Europe 600 slumped, with travel and leisure shares among the worst performers.
In Asia, equity indexes were mixed. South Korean shares rose, while Australia's stock benchmark dropped to the lowest since early August.
Here are the main market moves:
Stocks
--The S&P 500 Index rose 0.8% as of 4 p.m. EDT.
--The Stoxx Europe 600 Index fell 0.3%.
--The MSCI Asia Pacific Index increased 0.5%.
--The MSCI Emerging Market Index increased 1.5%.
Currencies
--The Bloomberg Dollar Spot Index rose less than 0.1%.
--The euro fell 0.2% to $1.1908.
--The Japanese yen was little changed at 105.95 per dollar.
Bonds
--The yield on 10-year Treasurys fell three basis points to 0.67%.
--Germany's 10-year yield fell two basis points to -0.42%.
--Britain's 10-year yield fell two basis points to 0.29%.
Commodities
--West Texas Intermediate crude rose 0.6% to $42.88 a barrel.
--Copper fell 1.4% to $3.019 a pound.
--Gold rose 0.1% to $1,969.56 an ounce.
