NEW YORK, New York - U.S. stocks extended their rally on Wednesday amid a global clamor for stocks, sliding oil prices, and retreating Treasury yields.
But will it last?
"Falling bond yields are being interpreted by equity markets as a positive in the near term," JPMorgan Chase's Marko Kolanovic told MarketWatch Wednesday. Yet, "absent pre-emptive rate cuts by global central banks, we see risks compounding with peak effect of restrictive monetary policy still ahead."
S&P 500 (^GSPC): The Standard and Poor's 500 closed at 4,508.59, registering an increase of +12.89 points or +0.29 percent. Market activity was robust, with a total volume of 1.631 billion shares traded.
Dow Jones Industrial Average (^DJI): The Dow Jones Industrial Average concluded the day at 35,029.51, marking a gain of +201.81 points or +0.58 percent. The index witnessed a trading volume of 208.866 million shares.
NASDAQ Composite (^IXIC): The NASDAQ Composite experienced a relatively subdued performance Wednesday, closing at 14,121.36 with a modest gain of +26.98 points or +0.19 percent. The day's trading saw a total volume of 3.382 billion shares.
The day's trading reflected a cautious approach among investors, with gains across indices staying within a narrow range.
Global Foreign Exchange Market Update: Currency Movements Wednesday
In the foreign exchange markets on Wednesday, major currency pairs witnessed various movements. Here are the latest quotes for key currency pairs:
Euro / US Dollar (EURUSD): The euro against the U.S. Dollar closed at 1.0847, indicating a slight decrease of -0.29 percent or -0.0031.
US Dollar / Japanese Yen (USDJPY): The Japanese yen dropped sharply to 151.34, for a loss of -0.65 percent or -0.97.
US Dollar / Canadian Dollar (USDCAD): The Canadian dollar edged up +10 percent or +.0013 to 1.3678.
British Pound / US Dollar (GBPUSD): The British pound slipped -.063 percent or 0.0078 to 1.2419 Wednesday.
US Dollar / Swiss Franc (USDCHF): The Swiss Franc firmed to 0.8883, indicating a slight increase of +0.07 percent or +0.0006.
Australian Dollar / US Dollar (AUDUSD): The Australian dollar inched up to 0.6510, showing a modest increase of +0.06 percent or +0.0004.
New Zealand Dollar / US Dollar (NZDUSD): The New Zealand dollar against the U.S. dollar settled at 0.6025, experiencing a positive movement of +0.30 percent or +0.00178.
Stock Markets Rally Worldwide on Wednesday: Strong Gains Across Major Indices
In a surprising turn of events, global stock markets experienced a robust rally on Wednesday, with significant gains seen across major indices. Investors showed confidence amid positive economic indicators, particularly lower inflation numbers both in the U.S. and the UK, and upbeat corporate performances.
Let's take a closer look at the latest quotes from key stock markets:
S&P/TSX Composite index (^GSPTSE): Canada's S&P/TSX Composite index closed at 20,054.28, showing a slight increase of +30.55 points or +0.15 percent. The total trading volume for the day reached 116.488 million shares.
FTSE 100 (London): The FTSE 100 index closed at 7,486.91, marking a gain of +46.44 points or +0.62 percent.
DAX PERFORMANCE-INDEX (Frankfurt): Germany's DAX index surged to 15,748.17 Wednesday, recording an impressive increase of +133.74 points or +0.86 percent.
CAC 40 (Paris): The CAC 40 in Paris also joined the rally, closing at 7,209.61 with a gain of +23.93 points or +0.33 percent.
ESTX 50 PR.EUR (Eurozone): Eurozone's ESTX 50 PR.EUR closed at 4,315.53, up by +23.81 points or +0.55 percent.
Euronext 100 Index (Eurozone): The Euronext 100 Index showed a positive change Wednesday, closing at 1,347.81 with a gain of +5.03 points or +0.37 percent.
BEL 20 (Brussels): Belgium's BEL 20 closed at 3,531.20, reflecting a gain of +23.73 points or +0.68 percent.
MOEX Russia Index (Moscow): The MOEX Russia Index experienced a slight decline, closing at 2,222.51 with a decrease of -4.14 points or -0.19 percent.
Nikkei 225 (Tokyo): In Asia, the Nikkei 225 soared to 33,519.70 Wednesday, reflecting an extraordinary increase of +823.77 points or +2.52 percent.
HANG SENG INDEX (Hong Kong): Hong Kong's Hang Seng Index experienced a remarkable surge, closing at 18,079.00, up by +682.14 points or +3.92 percent.
SSE Composite Index (Shanghai): The SSE Composite Index in Shanghai climbed to 3,072.83, showing a positive change of +16.76 points or +0.55 percent.
Shenzhen Index (Shenzhen): China's Shenzhen Index also participated in the global rally, closing at 10,077.96, up by +72.41 points or +0.72 percent.
STI Index (Singapore): Singapore's STI Index closed at 3,132.12 Wednesday, up by +27.46 points or +0.88 percent.
S&P BSE SENSEX (Mumbai): India's S&P BSE SENSEX closed at 65,675.93, posting a gain of +742.06 points or +1.14 percent.
NIFTY 50 (Mumbai): India's NIFTY 50 closed at 19,675.45, up by +231.90 points or +1.19 percent.
IDX COMPOSITE (Jakarta): Indonesia's IDX COMPOSITE surged to 6,958.21, up by +96.15 points or +1.40 percent.
FTSE Bursa Malaysia KLCI (Kuala Lumpur): The FTSE Bursa Malaysia KLCI closed at 1,466.84, showing a gain of +15.12 points or +1.04 percent.
KOSPI Composite Index (Seoul): South Korea's KOSPI Composite Index gained +53.42 points or +2.20 percent Wednesday, closing at 2,486.67.
TSEC weighted index (Taipei): Taiwan's TSEC weighted index closed at 17,128.78, showing a gain of +213.07 points or +1.26 percent.
S&P/ASX 200 (Sydney): Australia's S&P/ASX 200 witnessed a substantial gain of +99.20 points or +1.42 percent, closing at 7,105.90.
ALL ORDINARIES (Australia): The ALL ORDINARIES index in Australia gained +109.60 points or +1.52 percent Wednesday, closing at 7,316.70.
S&P/NZX 50 INDEX GROSS (Wellington): New Zealand's S&P/NZX 50 INDEX GROSS closed at 11,352.84, up by +179.56 points or +1.61 percent.
Top 40 USD Net TRI Index (Johannesburg): The Top 40 USD Net TRI Index in Johannesburg posted a significant gain of +121.16 points or +3.08 percent, closing at 4,057.63.
TA-125 (Tel Aviv): The TA-125 index in Tel Aviv closed at 1,723.85 Wednesday, up by +4.70 points or +0.27 percent.
EGX 30 Price Return Index (Cairo): The EGX 30 Price Return Index in Cairo closed at 24,138.80, posting a gain of +244.70 points or +1.02 percent.
Investors are optimistic about the global economic recovery, and the positive momentum is expected to continue in the coming days. The diverse gains across major markets on Wednesday reflect a broad-based confidence in the financial markets worldwide.