Tech Spurs U.S. Stocks to Best Week Since November: Markets Wrap

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U.S. stocks joined a global advance in equities sparked by China’s renewed commitment to stimulus as investors grew more confident that central banks will remain accommodative. Treasuries rose.

The S&P 500 Index headed for its best week since November, with technology shares surging after a strong earnings report from Broadcom. Volumes jumped and trading was volatile amid the expiration of futures and options on both indexes and stocks. The 10-year Treasury yield dipped below 2.6 percent. Equities from Tokyo to London rose after the Chinese government said it would cut value-added taxes, reinforcing expectations for an eventual pick-up in the world’s second-largest economy.

Broadcom surged to a record after its forecast, lifting semiconductor stocks, and Boeing reversed losses and posted a small gain after a report it plans to upgrade software in its grounded 737 Max jets. Adobe declined after reporting disappointing results and Tesla fell sharply after its latest model was met with mixed reviews.

Global stocks ended the week on a solid footing, wiping out the losses last week that were the worst of the year. Investor attention will turn to a packed calendar in the days ahead. Central banks in the U.S., the U.K. and Brazil will all announce policy decisions, while European Union leaders meet for discussions likely to be dominated by Britain’s request to extend its withdrawal timescale. Boeing shares may remain active as the plane maker’s lawsuit risks soared around the 737 Max groundings.

Elsewhere, West Texas crude slipped as the International Energy Agency said OPEC nations have enough spare capacity to make up for any supply shock from the escalating crisis in Venezuela. The pound strengthened at the end of a week made volatile by critical votes on Brexit in Parliament. Prime Minister Theresa May won the endorsement of British politicians to seek a Brexit delay.

And these are the main moves in markets:

Stocks

• The S&P 500 rose 0.5 percent at the close of trade in New York. It added 2.9 percent this week.
• The Stoxx Europe 600 Index rose 0.7 percent.
• The MSCI Asia Pacific Index rose 0.8 percent.
• The MSCI Emerging Market Index rose 0.9 percent.

Currencies

• The Bloomberg Dollar Spot Index fell 0.2 percent.
• The euro rose 0.2 percent to $1.1321.
• The British pound rose 0.4 percent to $1.3291.

Bonds

• The yield on 10-year Treasuries fell four basis points to 2.59 percent.
• Britain’s 10-year yield fell one basis point to 1.21 percent.
• Germany’s 10-year yield fell less than one basis point to 0.08 percent.

Commodities

• WTI crude slipped 0.3 percent to $58.41 a barrel.
• Gold gained 0.4 percent to $1,301.87 an ounce.

--With assistance from Kristine Aquino, Adam Haigh, Ksenia Galouchko, Todd White and Eddie van der Walt.

To contact the reporters on this story: Jeremy Herron in New York at jherron8@bloomberg.net;Vildana Hajric in New York at vhajric1@bloomberg.net

To contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Brendan Walsh

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