Tech Leads Stock Gains, Tempering Stimulus Concern: Markets Wrap

(Bloomberg) -- Stocks rebounded as a rally in tech shares tempered concern over an uncertain outlook for a U.S. stimulus package. The dollar climbed.

The S&P 500 erased losses and the Nasdaq 100 outperformed as giants Apple and Tesla climbed at least 1.8%. Industrial, consumer-discretionary and financial shares also gained. Carnival and Royal Caribbean Cruises rallied after being upgraded at Barclays, which said the “worst is in the past” for cruise companies. The benchmark gauge was still on track for its fourth straight weekly decline -- the longest losing streak since August 2019.

Equities fell earlier Friday as a last-ditch attempt by Democrats and the White House to restart negotiations on new stimulus drew skepticism in Congress that a deal could be reached and written into law by the November election. There’s a perception that the two sides still remain far apart on the size of a relief package. Amid mounting signs that the pace of recovery will ebb, investors have once again turned back to the companies flush with cash and tested in times of crisis.

“If I were to be unsure about a stimulus package, unsure about whether there will be a vaccine, there’s no better thing than to hide out in the megacap tech stocks because they work in an economy-closed scenario,” Andrew Slimmon, senior portfolio manager at Morgan Stanley Investment Management.

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These are some of the main moves in markets:

Stocks

The S&P 500 rose 0.3% as of 11:09 a.m. New York time.The Stoxx Europe 600 Index dipped 0.5%.The MSCI Asia Pacific Index climbed 0.4%.

Currencies

The Bloomberg Dollar Spot Index increased 0.3%.The euro dipped 0.3% to $1.1636.The Japanese yen depreciated 0.1% to 105.50 per dollar.

Bonds

The yield on 10-year Treasuries decreased one basis point to 0.66%.Germany’s 10-year yield decreased two basis points to -0.52%.Britain’s 10-year yield dipped three basis points to 0.194%.

Commodities

West Texas Intermediate crude decreased 0.4% to $40.13 a barrel.Gold depreciated 0.4% to $1,861.35 an ounce.Silver weakened 1.4% to $22.83 per ounce.

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