S&P 500 closes at record high on global risk appetite

Mon Jul 11, 2016 4:30pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

By Sam Forgione

NEW YORK (Reuters) - The U.S. benchmark S&P 500 stock index set record intraday and closing highs on Monday as last week's strong monthly U.S. jobs report worked its way into financial markets, and European shares rose as a single candidate emerged to succeed David Cameron as British prime minister.

The S&P 500 .SPX ended at a record high of 2,137.16 after touching a record intraday high of 2,143.16. It overtook the previous highs touched in May 2015 as investors harbored greater optimism about the U.S. economy after last Friday's stronger-than-expected jobs report.

The gains in U.S. shares on Monday were broad based. Industrials .SPLRCI and consumer staples .SPLRCS also hit record highs. The tech-heavy Nasdaq Composite rose above 5,000 for the first time since December during the session.

The STOXX Europe 600 .STOXX closed up 1.6 percent at 332.72, its highest close since Britain's vote to exit the European Union on June 23. Theresa May won the race to succeed David Cameron as Prime Minister, reducing political uncertainty in the UK.

"The markets are having a feel-good rally because the jobs report on Friday was better-than-expected and that was followed up by some good election news in Britain and Japan," said Alan Gayle, senior investment strategist at RidgeWorth Investments in Atlanta. "Investors have been looking for a reason to buy stocks and now they have it."

U.S. Treasury yields rose on Japanese Prime Minister Shinzo Abe's order for a fresh round of fiscal stimulus, which reduced demand for safe-haven U.S. bonds, and as investors braced for $56 billion in supply this week. Abe's ruling coalition clinched a victory in Sunday's election to parliament's upper house.

U.S. 30-year yields US30YT=RR were last at 2.146 percent after hitting a record low of 2.089 percent in overnight trading. Benchmark 10-year yields US10YT=RR were last at 1.432 percent, from a yield of 1.365 percent late Friday.

MSCI's all-country world equity index .MIWD00000PUS was last up 3.77 points, or 0.94 percent, at 404.76.   Continued...

People walk through the lobby of the London Stock Exchange in London, Britain August 25, 2015.  REUTERS/Suzanne Plunkett/File photo