Wall Street extends gains as risk appetite improves
After starting the day higher, major equity indexes in the U.S. extended their gains into the second half of the session as the trading sentiment remained positive. CBOE Volatility Index (VIX), which is also known as the "fear gauge," was down around 12% at the time of writing, amid a lack of major developments from North Korea and the White House.
"As the pockets of political worries that have caused short-term spikes and volatility ebb and flow, the market is rightfully focused on the solid fundamentals. We've had a decent economic backdrop against moderate inflation. As long as inflation remains moderate, I think the market continues to move higher"." Brent Schutte, chief investment strategist for Northwestern Mutual Wealth Management Company, told Reuters.
In addition to rising crude oil prices on Tuesday, some market rumors about a possible shortage of some metals provided an extra boost to the commodities, lifting the materials index .SPLRCM higher more than 1% on the day. Furthermore, after three straight days of losses, bargain-hunting allowed the .tech index .SPLRCT to add nearly 1.3%.
As of writing, the Dow Jones Industrial Average was up 192.46 points, or 0.87% at 21,892.73, the S&P 500 was adding 23 points, or 0.94%, at 2,447.52 and the Nasdaq Composite was gaining 82.24 points, or 1.32%.
Headlines from the U.S. session:
- Jackson Hole – another consideration for the Kiwi - Nomura
- Dollar Index erases Monday’s losses and tests 93.50
- Chinese to be allowed to invest in securities traded overseas? - UOB
- Home ownership and measuring inflation - BBH
- Richmond Fed: Service sector firms report improved activity in August
- Richmond Fed: Composite index remained at 14 in August
- U.S. house prices rise 1.6% in second quarter
- Philly Fed: Firm-level general activity index rose to its highest reading in 4 months
- N Korean diplomat: US-S Korea military exercises are an "aggressive war scenario"