NEW YORK (Reuters) – Stocks rose in global indexes on Monday, with the Nasdaq and growth names leading gains on Wall Street, while the U.S. dollar strengthened amid talk of more sanctions against Moscow in the wake of international outrage over the killing of civilians in Ukraine.
Adding to investor caution, the 2-year/10-year Treasury yield curve has remained inverted, indicating to some market watchers that a recession could follow within 1-2 years.
The deaths in Bucha, outside Kyiv, are likely to prompt the United States and Europe to impose additional sanctions against Moscow over its invasion of Ukraine. Read more The prospect of more sanctions sent oil prices higher, which jumped more than 3%.
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The dollar rose for the third consecutive session as investors sought safety in the dollar. Read more
“The dollar is bouncing higher as geopolitical developments have cast bleak clouds over the global economy,” said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington. The Kremlin, which describes its work as a “special operation,” denied the accusations of killing civilians.
The greenback also remained supported by the strong non-farm payrolls report for March which supported expectations of a half percentage point interest rate hike by the Federal Reserve next month.
The dollar index rose 0.369%.
The euro, which has been pressured by economic concerns since the invasion of Ukraine, fell 0.8% against the dollar to $1.0970. Against the pound, the euro was down 0.7% at 83.64 pence.
On Wall Street, Twitter shares rose 27.1% after news of Tesla Inc (TSLA.O) CEO Elon Musk has built a 9.2% stake in Twitter Inc (TWTR.N). Read more
Other big growth shares have also gone up with technology (.SPLRCT) and consumer appreciation (.SPLRCD) Which gives the S&P 500 its biggest boost.
said Paul Nolte, portfolio manager at Kingsview Investment Management in Chicago.
Dow Jones Industrial Average (.DJI) The Standard & Poor’s Index rose 103.61 points, or 0.3 percent, to 34,921.88 (.SPX) It rose 36.78 points, or 0.81%, to 4,582.64 points, and the Nasdaq Composite (nineteenth) It added 271.05 points, or 1.9%, to 14532.55 points.
Pan-European STOXX 600 Index (.stoxx) It rose 0.84% and the MSCI gauge of stocks worldwide (.MIWD00000PUS) 0.86% profit.
In the US Treasury market, the 10-year Treasury yield was last at 2.404% while the 2-year Treasury yield was at 2.420%.
The jump in US bond yields boosted the dollar, particularly against the yen as the Bank of Japan repeatedly acted last week to keep bond yields near zero.
The US Commerce Department said factory orders fell 0.5% in February, in line with expectations. The January data was revised slightly higher to show orders rising 1.5% instead of 1.4% as previously reported. Read more
Brent crude jumped $3.14, or 3%, to settle at $107.53 a barrel. US West Texas Intermediate crude rose $4.01, or 4%, to settle at $103.28 a barrel. Read more
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Additional reporting by Gertrude Chavez-Dreyfus and Stephanie Kelly in New York and Julian Ponthos in London. Editing by Richard Chang, Andrea Ricci, and David Gregorio
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