Stocks Higher, but Tensions Keep Gains in Check…..
U.S. equities finished higher, adding to the sharp rally seen in April and May off of the March lows, but U.S.-China tensions and continued civil unrest domestically kept a lid on the optimism. Economic reopenings remain the major catalyst, while yesterday’s relatively upbeat global manufacturing reports added to the positive sentiment. In equity news, commentary from Dow member Visa and Dick’s Sporting Goods was upbeat, while Bank of America announced a $1.0 billion commitment in support of the recent unrest. Treasury yields finished higher as bond prices declined and the U.S. dollar saw a modest downtick amid an empty economic calendar, while crude oil prices were higher and gold lost ground. Markets in Europe and Asia finished with widespread gains.
The Dow Jones Industrial Average rose 268 points (1.1%) to 25,743, the S&P 500 Index gained 25 points (0.8%) to 3,081 and the Nasdaq Composite increased 56 points (0.6%) to 9,608. In heavy volume, 1.0 billion shares were traded on the NYSE and 3.9 billion shares changed hands on the NASDAQ. WTI crude oil rose $1.37 to $36.81 per barrel and wholesale gasoline gained $0.05 to $1.12 per gallon. Elsewhere, the Bloomberg gold spot price declined $11.37 to $1,728.18 per ounce, and the Dollar Index—a comparison of the U.S. dollar to six major world currencies—was down 0.2% at 97.68.
Treasuries were lower amid a dormant economic docket, as the yield on the 2-year note ticked 1 basis point (bp) higher to 0.17%, the yield on the 10-year note rose 2 bps to 0.68% and the 30-year bond rate gained 3 bps to 1.48%.
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