World stocks moved higher on Wednesday, November 21, 2018, after a rebound in U.S. technology shares helped steady Wall Street and oil prices recovered from a sharp slide on signs of firm fuel demand.
The S&P 500 regained ground after losing 3.5 percent over the previous two sessions. Amazon.com Inc, Alphabet Inc and Facebook Inc each climbed more than 2 percent, while Apple Inc rose 0.6 percent, helping restore confidence in momentum names that had been hit hard earlier in the week.
Oil also bounced after U.S. government data pointed to strong gasoline and diesel demand. Even so, the move was restrained by worries about rising crude supply after U.S. crude had fallen to one-year lows in the prior session.
Chad Morganlander, senior portfolio manager at Washington Crossing Advisors in Florham Park, New Jersey, said investors were also reacting to the possibility that the Federal Reserve could slow its rate-hike campaign. A report from MNI suggested the central bank could pause as early as spring 2019.
“This, I believe, is leading investors to pause for a moment and say, ‘What if the Fed doesn’t raise rates?’” Morganlander said. “That, in a light day of trading, has a meaningful implication for the market.”
The holiday calendar also shaped trading, with U.S. stock and bond markets due to close on Thursday for Thanksgiving before reopening for a half-day on Friday.
By the close, the Dow Jones Industrial Average had gained 173.33 points, or 0.71 percent, to 24,638.97. The S&P 500 added 23.82 points, or 0.90 percent, to 2,665.71, while the Nasdaq Composite rose 107.27 points, or 1.55 percent, to 7,016.09.
European markets joined the recovery. The STOXX 600 advanced 1.1 percent as beaten-down technology and banking shares recovered, while MSCI’s gauge of stocks across the globe rose 0.75 percent.
In energy markets, U.S. crude climbed 2.7 percent to $54.87 a barrel and Brent crude futures rose 2 percent to $63.76 a barrel.
The euro firmed as investors hoped Italy’s budget dispute could be resolved, even though the European Commission had taken its first formal step toward disciplining Rome over its deficit. Morganlander said tensions inside the European Union could have wider consequences for the global financial system, though he added it was still too early to know whether the pressure would ease.
The dollar index, which measures the greenback against six major currencies, slipped 0.2 percent after rising in Tuesday’s risk-off session. Benchmark 10-year notes last fell 5/32 in price to yield 3.0664 percent, compared with 3.048 percent late on Tuesday.
Reporting by April Joyner; additional reporting by Sujata Rao in London and Shinichi Saoshiro in Tokyo; editing by Bernadette Baum and Nick Zieminski.
