Stock indexes hit record highs, dollar edges higher
MSCI’s gauge of stocks across the globe was last up 7.13 points, or 0.69%, at 1,035.15 and reached a record high
Stock indexes rose to record highs on Tuesday, while the dollar edged higher as investors focused on key market data this week that could help gauge the outlook for U.S. central bank policy.
Oil prices fell as investors assessed expectations of ample global supply this year against uncertainty around Venezuelan crude output.
The market’s reaction to the geopolitical situation in Venezuela was well taken, but reports that the White House was thinking about taking Greenland with force, could cause a bit of a roadblock, said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
We had new record highs today, and the momentum keeps building in the marketplace. It’s roughly due to the January effect, he said, referring to an early-year buying pattern in stocks. If labour data later this week is weaker than expected, that could help expectations for U.S. rate cuts, he added.
On U.S. stock market, chip stocks rose on renewed artificial intelligence optimism.
Shares of Exxon Mobil were down 3.4% on Tuesday. On Monday, the raid on Venezuela had provided a boost to big U.S. oil companies’ stock as investors bet Washington would give U.S. firms access to Venezuela’s oil reserves. Trump’s administration plans to meet executives from oil companies later this week to discuss boosting production in Venezuela.
The Dow Jones Industrial Average rose 484.90 points, or 0.99%, to 49,462.08, the S&P 500 rose 42.77 points, or 0.62%, to 6,944.82 and the Nasdaq Composite rose 151.35 points, or 0.65%, to 23,547.17.
MSCI’s gauge of stocks across the globe was last up 7.13 points, or 0.69%, at 1,035.15 and reached a record high during the session.
The pan-European STOXX 600 index ended up 0.58% and hit a record high. Indexes in Germany and Spain hit record highs, as investors remained confident in the economic outlook despite escalating geopolitical tensions.
The dollar index, which measures the dollar against a basket of currencies including the yen and the euro, rose 0.17% to 98.56.