Market Focus
U.S. stocks closed at the highest levels of the day amid optimism that President Donald Trump will leave the hospital and lawmakers will move closer to providing more stimulus.
The S&P 500, Nasdaq Composite and Dow Jones Industrial Average all rebounded from Friday’s swoon in the wake of Trump’s coronavirus disclosure. Regeneron Pharmaceuticals Inc. rallied after Trump was given an experimental antibody treatment made by the drug maker. Energy, health care and technology shares were the biggest gainers in the S&P, pushing the benchmark index up by the most in almost four weeks.
Traders also pointed to polls suggesting a stronger lead for Biden and the possibility that a clear winner will emerge from the Nov. 3 election. U.S. markets have been nervous in recent weeks about a close election and the risk of a long and messy legal battle.
Elsewhere, consumer companies and banks led a broad advance among European stocks. Equities in Asia notched gains, while crude oil rebounded from a three-week low and gold advanced.
Main Pairs Movement
The greenback slid the most in more than a month as improving risk sentiment and anticipation of a Democratic sweep in November drove stocks and Treasury yields higher; all of the G-10 currencies except the yen and Kiwi dollar strengthened.
Other than this, risk assets benefited from polls showing ebbing odds of a disputed election outcome along with the potential for an agreement on another round of fiscal stimulus. Canadian loonie fell .3% to 1.3257 as of writing, lowest level since Sept. 21 as WTI oil gained 5.9% most since May amid risk-on.
As commodities-linked currency, Aussie rose .3% to .7128, was supported after the nation’s Prime Minister said the government will bring forward $7.5 billion in infrastructure finding into this year’s budget, which will be released Tuesday.
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