Tech Leads U.S. Stocks Higher; Dollar Slumps: Markets Wrap

(Bloomberg) — Tech companies drove gains in U.S. equities as investors snapped up work-from-home winners, while the dollar fell to a two-year low on growing conviction that interest rates will stay suppressed.

The Nasdaq 100 reached a record as Zoom Video Communications Inc. led a rally in companies well positioned for stay-at-home orders. Apple Inc. dragged the S&P 500 higher, even as most of its members fell. Travel companies pushed the Stoxx Europe 600 lower. The euro strengthened to just below $1.20. The yield on 10-year Treasuries rose.

Euro-Area Inflation Turns Negative for First Time Since 2016

Stocks have churned higher and the dollar has dropped since last week’s announcement from the Federal Reserve that policy makers will be more accommodative to juice inflation. Meanwhile, Chinese factory data signaled rising global demand for manufactured goods after the initial shock of the pandemic, while data in Europe painted an uneven picture about the outlook for growth.

“The weakness in the dollar is likely to continue and I suspect it will be substantially weaker from where it is against the euro by the end of the year,” said Savvas Savouri, chief economist at Toscafund Asset Management. “We’ve got the Fed chairman clearly telling us he wants inflation to ratchet upwards, and the only reliable way to achieve this is through the channel of a weaker currency.”

In Asia, equity indexes were mixed on Monday. South Korean shares rose, while Australia’s stock benchmark dropped to the lowest since early August.

Here are some key events to watch this week:

Australia GDP is due Wednesday.U.S. jobless claims for the week ended Aug. 29 are due Thursday.U.S. jobs report Friday is forecast to show payrolls continued to rebound in August from virus lows.

Here are the main market moves:


The S&P 500 Index rose 0.2% as of 10 a.m. New York time.The Stoxx Europe 600 Index fell 0.8%.The MSCI Asia Pacific Index increased 0.4%.The MSCI Emerging Market Index increased 1.3%.


The Bloomberg Dollar Spot Index dipped 0.3%.The euro rose 0.3% to $1.1975.The Japanese yen was little changed at 105.88 per dollar.


The yield on 10-year Treasuries rose one basis point to 0.71%.Germany’s 10-year yield was little changed at -0.40%.Britain’s 10-year yield rose one basis point to 0.32%.


West Texas Intermediate crude rose 1.6% to $43.30 a barrel.Copper fell 0.4% to $3.0495 a pound.Gold strengthened 0.7% to $1,982.33 an ounce.” data-reactid=”38″>For more articles like this, please visit us at

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