Wall Street leads stocks’ rebound, sterling dips

The Dow Jones Industrial Average rose 580.25 points, or 2.32 per cent, to 25,595.8, the S&P 500 gained 44.19 points, or 1.47 per cent, to 3,053.24 and the Nasdaq Composite added 116.93 points, or 1.2 per cent, to 9,874.15. — Reuters pic

NEW YORK, June 30 — A gauge of stocks across the world rose yesterday, led by a rebound on Wall Street, even as rising Covid-19 cases threaten to stall the recovery of the world’s largest economy.

Contracts to buy US previously owned homes rose by the highest percentage on record in May. But they remained below their February level and were down compared with May 2019, which also kept alive expectations for even more economic stimulus.

Analysts at Morgan Stanley said a further injection of cash was critical to the bank’s thesis for a V-shaped US economic recovery.

“The market believes that the (Federal Reserve) has its back,” said Sam Stovall, chief investment strategist at CFRA Research in New York.

“If things get really bad, the Fed will step in with additional monetary easing and basically reach into their bag of tricks to do whatever they need to support the market.”

Confirmed Covid-19 cases worldwide rose past 10 million and deaths surpassed 500,000 on Sunday. The relentless spread of the new coronavirus in the United States, Latin America and elsewhere curbed optimism over the global economy and raised worries that some reopening plans will be delayed.

Boeing shares shot up 14 per cent after 737 MAX certification flights started yesterday and the rally gave life to the Dow industrials, while factory — and materials-heavy sectors of the S&P 500 boosted the benchmark index. Indexes closed the day at or near session highs.

The pan-European STOXX 600 index rose 0.44 per cent and MSCI’s gauge of stocks across the

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