· Nasdaq ends at record, confirms bull market on economic recovery hopes
The Nasdaq posted a record closing high on Monday, becoming the first of the major indexes to confirm a new bull market, while the S&P 500 ended in positive territory for the year as expectations for a swift recovery from a coronavirus-driven downturn increased.
Rising technology and communication stocks have driven gains in the Nasdaq, which confirmed a new bull market just 16 weeks after coronavirus fears crushed stocks and pushed the U.S. economy into recession.
The Nasdaq has climbed 44.7% from its March 23 bottom. A bull market is confirmed once the index makes a new high and is considered to have begun at the index’s low, according to a widely accepted definition.
The S&P 500 remains about 4.5% below its record high close, while the Dow is about 6.7% below.
The Dow Jones Industrial Average rose 461.46 points, or 1.7%, to 27,572.44, the S&P 500 gained 38.46 points, or 1.20%, to 3,232.39 and the Nasdaq Composite added 110.66 points, or 1.13%, to 9,924.75.
Investors will also focus this week on the Fed’s two-day policy meeting, ending on Wednesday, where the jobs report will most likely be discussed.
It would be the first meeting since April when Fed Chair Jerome Powell said the U.S. economy could feel the weight of the economic shutdown for more than a year.
· European markets close lower as focus remains on pandemic and economic recovery
European stocks closed slightly lower Monday as investors weighed an economic recovery from the coronavirus pandemic and global protests against racism.
The pan-European Stoxx 600 provisionally closed down by over 0.2%. Technology shares were the worst performers, down about 1.6%, while banks on the other hand rose nearly 1.6%.
The negative sentiment in Europe marks a divergence from the largely positive trend seen in Asia and the U.S.
· Australia soars more than 3% as S&P 500 turns positive for the year
Stocks in Asia Pacific traded higher Tuesday morning after an overnight rally stateside that saw the S&P 500 erasing its losses and entering positive territory for the year.
Shares in Australia, which returned to trade following a Monday holiday, led gains in the region’s major markets as the S&P/ASX 200 soared 3.17%. Shares of major banks such as Commonwealth Bank of Australia, Westpac and Australia and New Zealand Banking Group soared more than 4% each.
South Korea’s Kospi also gained 1.2%.
Shares of Samsung Group companies in South Korea were higher on Tuesday. Industry heavyweight Samsung Electronics rose 2.19% while Samsung Biologics jumped 2.41% and Samsung C&T advanced 1.76%.
In Japan, the Nikkei 225 hovered around the flatline while the Topix index added 0.11%.
Overall, the MSCI Asia ex-Japan index traded 0.91% higher.
Reference: CNBC, Reuters
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