Global stocks rose on Wednesday as recovery hopes overcame fears that a surge in coronavirus cases would slow the U.S. economy, but many investors still sought safety on pandemic worries, driving gold prices above $1,800 an ounce for the first time since 2011.
Stocks on Wall Street rose, and the Nasdaq marked a record closing high, boosted by technology shares, while demand for the dollar slid even as the number of confirmed U.S. coronavirus cases surpassed 3 million. Still, demand for the dollar proved remarkably stable given Wall Street’s strength.
The technology-rich Nasdaq finished at a record closing high, the fourth time in five days.
On Wall Street, the Dow Jones Industrial Average rose 177.1 points, or 0.68%, to 26,067.28. The S&P 500 gained 24.63 points, or 0.78%, to 3,169.95 and the Nasdaq Composite added 148.61 points, or 1.44%, to 10,492.50.
But investor sentiment remains tenuous as the pandemic resurges in the United States and elsewhere. Oil prices were steady as rising U.S. crude inventories and the coronavirus surge put the brakes on a recent recovery.
Yousef Abbasi, global market strategist at StoneX Group Inc in New York, said U.S. investors in particular are still comfortable with the idea of buying secular growth or select companies they think will thrive in a low-consumption economy.
While materials, industrial and bank stocks were lower, Abbasi said, other sectors were delivering gains.
“If you’re in an industry where your focus is in technology, such as enterprise software or e-commerce, providing the backbone for those businesses, you’ve been rewarded hand over fist,” Abbasi said.
The MSCI world equity index, a gauge of equity markets in 49 nations, rose 0.63% and its emerging markets index jumped 1.77% as investors continue to pour into Chinese equities.
“There is certainly a rush from retail to buy Chinese stocks,” Abbasi said. “Trading volumes are eclipsing their normal