US stocks rally, technology surges after steep decline

Bloomberg

US stocks climbed on tech strength, trimming recent losses from the sharp declines across asset classes during Tuesday’s session. Treasuries erased a drop and the dollar fell amid speculation the Federal Reserve may soften its policy stance.
All major benchmarks were higher, with the Nasdaq 100 Index leading gainers and erasing more than half of Tuesday’s decline. Retailers and media companies paced the gains in the S&P 500 Index. Apple Inc., which had lost 7.5 percent in the first two days of the week, rose slightly.
The greenback weakened after MNI reported the Fed is considering ending a cycle of interest rate hikes as early as the spring. In addition, US data showed that durable goods orders declined and filings for unemployment benefits rose.
Banks and telecommunications companies led an advance in the Stoxx Europe 600 Index as optimism for a compromise on Italy’s budget buoyed stocks. The euro gained and Italian bonds firmed on reports the Italian government may be open to budget revisions as the European Union took a first step toward imposing fines on the country.
The plunge in Apple Inc. hit suppliers in Asia, sending the leading benchmark tracking Asia-Pacific stocks lower. Oil rebounded from a one-year low that briefly sent it below $54, even as US President Donald Trump urged Saudi Arabia to keep lowering prices. Investors are weighing industry data that showed US crude inventories unexpectedly fell last week against doubts about OPEC’s plans to cut output.
Investor sentiment remains susceptible to the volatility that’s rocked markets since October. Traders are having to contend with the Trump Administration’s trade war, as well as the president’s calls on the Federal Reserve to back off from raising rates as corporate credit spreads at two-year highs reflect investor angst about borrowing costs.
Elsewhere, emerging-market shares climbed, and an index tracking developing-nation currencies reached the highest since August. Bitcoin advanced after a recent sell-off.
It’s a shortened trading week because of the Thanksgiving holiday in the US on Thursday. In addition, Black Friday, the day after Thanksgiving, marks the traditional start to the US holiday shopping season.
The S&P 500 was up 0.5 percent in New York, and the Nasdaq 100 added 1 percent. The Stoxx Europe 600 Index gained 0.8 percent, the first advance in more than a week. The MSCI All-Country World Index increased 0.4 percent. The MSCI Emerging Market Index climbed 0.3 percent.
The Bloomberg Dollar Spot Index fell 0.2 percent. The euro jumped 0.4 percent to $1.1418. The Japanese yen dipped 0.1 percent to 112.91 per dollar. The British pound gained 0.1 percent to $1.2807.
The yield on 10-year Treasuries rose one basis point to 3.0682 percent.