U.S. Stocks Climb to 12-Week High; Treasuries Drop: Markets Wrap

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(Bloomberg) -- U.S. stocks rose to a 12-week high as data showed the economic damage from the coronavirus pandemic was less severe than anticipated. Treasuries fell.

The S&P 500 extended gains into a fourth day, led by utilities and health-care companies. Technology stocks erased losses that were earlier triggered by news that President Donald Trump prepared to order narrower liability protections for social media platforms. Energy and bank shares that led the gains this week faltered.

Stocks have recovered globally to levels last seen in early March on fresh stimulus measures and hopes that economies are on the mend as lockdowns ease. U.S. states’ jobless rolls shrank for the first time during the outbreak even as millions more Americans filed for unemployment benefits, while readings on durable goods orders and personal consumption beat forecasts. Federal Reserve Bank of St. Louis President James Bullard said the economy may already have bottomed.

“The stock market believes the recovery will be about as swift as it possibly can be. It certainly seems to be pricing a very quick and vigorous recovery,” said Jared Kizer, chief investment officer of Buckingham Wealth Partners.

Traders also monitored mounting tensions between Washington and Beijing, with Chinese lawmakers approving a proposal for new national-security legislation in Hong Kong, in defiance of Trump.

Elsewhere, European stocks climbed amid optimism over economies reopening and a European Union fiscal stimulus plan. Shares rose throughout most of Asia, though the Hang Seng Index flirted with the lowest level since March after the U.S. said it could no longer certify Hong Kong’s political autonomy, a move that could have far-reaching consequences.

Here are some key events coming up:

• Federal Reserve Chairman Jerome Powell participates in a virtual discussion on Friday.
• Euro-area data due Friday is forecast to show consumer inflation fell to 0.1% in May from 0.4% the previous month.

These are some of the main moves in markets:

Stocks

• The S&P 500 rose 0.7% as of 12:10 a.m. New York time.
• The Stoxx Europe 600 Index gained 1.6%.
• The MSCI Asia Pacific Index climbed 0.9%.

Currencies

• The Bloomberg Dollar Spot Index dipped 0.3%.
• The euro increased 0.5% to $1.106, the strongest in two months.
• The Japanese yen strengthened 0.1% to 107.62 per dollar.

Bonds

• The yield on 10-year Treasuries climbed one basis point to 0.69%.
• Germany’s 10-year yield declined one basis point to -0.42%, the biggest fall in a week.
• Britain’s 10-year yield increased one basis point to 0.206%.

Commodities

• The Bloomberg Commodity Index fell 0.2%.
• West Texas Intermediate crude dipped 1% to $32.49 a barrel.
• Gold climbed 0.6% to $1,737.20 an ounce.

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