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U.S. stocks end higher on economic optimism

U.S. stocks end higher on economic optimism

Wall Street shares jumped Monday as investor sentiment turned upbeat that key U.S. economic data this week would show signs of recovery from the prolonged recession.
The Dow Jones Industrial Average climbed 90.99 points (1.08 percent) to end at 8,529.38 after ending Friday lower for the second straight week.
The tech-heavy Nasdaq gained 5.84 points (0.32 percent) to 1,844.06 and the broad-market Standard & Poor's 500 rose 8.33 points (0.91 percent) to 927.23.
Stocks were "led by strong gains in energy stocks as crude oil prices are moving solidly higher on geopolitical concerns, and helped by economic optimism in Europe following an upbeat economic confidence report," analysts at Charles Schwab & Co said in a note to clients.
Oil prices jumped Monday on tensions in crude producing Nigeria and China's reported plans to rapidly increase its strategic crude oil reserves. New York's main futures contract, light sweet crude for August, cross the key US$70 level to end at US$71.49.
"The strong recovery in equity and credit markets, which has led to an improvement in various measures of consumer and business sentiment - evident from consumer confidence, purchasing manager, homebuilder and small bus iness surveys - has taken sharp downside risks out of the outlook," said Joseph LaVorgna, analyst at Deutsche Bank.
"In light of the dramatic shift in market psychology, further dramatic tightening in credit conditions looks highly unlikely; hence second-half growth prospec ts have improved over the last few months," he said.
Elizabeth Harrow of Schaeffer's Investment Research attributed the market rise Monday also to "the effects of end-of-quarter window dressing by money managers."
Window dressing is a practice used by find managers to buy up the best performing shares of the quarter to improve a portfolio's composition.
The market "historically does well in days leading up to the Fourth of July holiday," added Scott Marcouiller, market strategist at Wells Fargo Advisors.


Updated : 2021-07-29 05:05 GMT+08:00