Market Overview

Stocks Jump Most Since April as Relief Rally Is On

U.S. stocks gave back some gains Friday following a strong early rally driven by technology shares and easing trade tensions with China amid a planned meeting between the countries in November and the Treasury Department’s determination that China isn’t manipulating its currency. Treasuries slipped, the dollar was steady and crude climbed above $71 a barrel.

The S&P 500 Index, which is looking to snap a six-day losing streak totaling 6.8 percent, partially retreated from an increase that reached 1.7 percent but still gained the most since June. The tech-heavy Nasdaq 100 Index rose the most since May. The rally was global, with the MSCI All-Country World Index gaining almost 1 percent. However, European shares faded into the close, with the Stoxx 600 Index turning negative to erase a gain that had reached almost 1 percent, capping its worst week since February.

Strong trade data from China also buoyed markets, with the MSCI Asia Pacific Index rising from the lowest level since May 2017. China trade data showed exports rebounded, while imports remained robust, thanks to strong demand at home and abroad despite worsening relations with the U.S. That eased some concern about the impact of the trade war, which had contributed to the worst equity sell-off since February amid worries about the Federal Reserve’s policy path.

Emerging-market stocks headed for the biggest gain in more than two years as risk appetite improved, and most developing-nation currencies advanced against the dollar. Turkey’s lira retreated from earlier gains after it was reported that a Turkish court set free U.S. Pastor Andrew Brunson after two years in jail, removing a source of tension between the countries.

The S&P 500 was up 1 percent as of 11:54 a.m. in New York, while the Nasdaq 100 added 1.7 percent. The Stoxx Europe 600 Index fell 0.3 percent, retreating from an increase of 1 percent. The MSCI All-Country World Index rose 0.7 percent. The MSCI Emerging Market Index surged 2.6 percent, the first advance in more than a week and the largest jump since March 2016.

Stocks Jump Most Since April as Relief Rally Is On, Bloomberg, Oct 12
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