(Bloomberg) — Technology shares led gains in U.S. stocks as inflation anxiety appeared to be easing. Bitcoin headed toward its biggest surge since February, rebounding from a weekend rout.
All major groups in the S&P 500 advanced. The world’s largest cryptocurrency soared after plunging as much as 18% on Sunday. Most base metals were under pressure, with iron ore and steel sinking as China stepped up its fight against soaring commodity prices.
While several analysts are warning that it may be too early to signal the all-clear on inflation risks, weaker-than-expected economic reports have helped quell investor worries. Data from the Federal Reserve Bank of Chicago showed Monday that U.S. economic activity slowed down in April. Rates on 10-year breakevens — a market gauge of inflation expectations over the next decade — are little changed after capping their biggest weekly decline since September.
“General inflation fears are a headwind on stocks, andthey will be until it becomes clear that inflation is a temporaryphenomenon,” Tom Essaye, a former Merrill Lynch trader who founded “The Sevens Report” newsletter, wrote to clients. “Until then,expect a more volatile market — but at this point strongpolicy support for stocks remains very much in place,and that’s a good thing.”
Read: Brainard Lays Out Cost Benefits of Central Bank Digital Currency
Some corporate highlights:
Virgin Galactic Holdings Inc. soared after the company founded by British billionaire Richard Branson conducted a test flight to space for the first time in more than two years.Coinbase Global Inc. climbed as Goldman Sachs Group Inc. recommended buying shares of the cryptocurrency exchange.Beyond Meat Inc. gained as the plant-based meat producer was upgraded to outperform at Bernstein.
Here are some events this week:
Consensus by CoinDesk brings prominent crypto voices together to discuss NFTs, exchanges and the role of central banks. Fed Governor Lael Brainard and Bridgewater founder Ray Dalio will participate. Through May 27.Bank of Indonesia rate decision Tuesday, Reserve Bank of New Zealand policy decision Wednesday, Bank of Korea rate decision Thursday.CEOs of the largest U.S. banks, including JPMorgan and Goldman Sachs, will testify before lawmakers in the Senate Banking and House Financial Services committees Wednesday.U.S. initial jobless claims, GDP, durable goods, pending home sales, Thursday.
These are some of the main moves in markets:
Stocks
The S&P 500 rose 0.5% as of 9:30 a.m. New York timeThe Nasdaq 100 fell 0.6%The Dow Jones Industrial Average rose 0.4%The Stoxx Europe 600 fell 0.1%The MSCI World index rose 0.3%
Currencies
The Bloomberg Dollar Spot Index fell 0.1%The euro rose 0.3% to $1.2215The British pound was little changed at $1.4149The Japanese yen rose 0.1% to 108.84 per dollar
Bonds
The yield on 10-year Treasuries was little changed at 1.61%Germany’s 10-year yield was little changed at -0.13%Britain’s 10-year yield declined one basis point to 0.82%
Commodities
West Texas Intermediate crude rose 1.7% to $65 a barrelGold futures rose 0.2% to $1,882 an ounce
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