Technology Sector Led USA Higher
The technology, health care and energy sectors led USA stocks higher after shares advanced broadly in Europe and Asia. The dollar strengthened, while benchmark Treasury yields lingered near one-month highs.
After a rotation earlier this week from growth to value shares, the Nasdaq Composite rose for the first time in four days as Apple’s cheaper priced iPhone gave analysts reason to cheer. President Donald Trump urged the Federal Reserve to cut interest rates to “zero, or less,” in a tweet, while China moved to lessen the trade war’s repercussions by announcing a range of U.S. goods to be exempted from 25% extra tariffs put in place last year.
“Get a trade deal, get a dovish Fed, decent valuations, lower interest rates, and all of a sudden, you have the tinder potentially for markets to move higher,” Jeff Mortimer, director of investment strategy for BNY Mellon Wealth Management, said in an interview at Bloomberg’s New York headquarters.
“We are primed for a little bit of disappointment,” Jeff Boswell, a fund manager at Investec Asset Management, told Bloomberg TV in Singapore. “On the QE front, whilst we’ve been expectant of something — certainly on the corporate bond-buying side that the market’s been expecting — it is unlikely to come tomorrow.”
The ECB policy meeting Thursday is widely expected to see a cut to interest rates and a review of all options, including QE. Policy makers will also publish forecasts for growth and inflation. ECB President Mario Draghi will hold a press conference.
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