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U.S. Stocks Jump Toward Best Gain in Three Weeks: Markets Wrap

(Bloomberg) — U.S. stocks bounced back a day after their biggest rout in four months, with investors encouraged by better-than-forecast economic data even as they kept a wary eye on growing coronavirus infections.The S&P 500 Index headed to its biggest gain in three weeks, getting an extra lift in the afternoon after President Donald Trump said he plans “a very big package” of stimulus after the election. Investors also looked toward earnings reports from Apple Inc., Inc., Alphabet Inc. and Facebook Inc. due after the close. The dollar strengthened and Treasury yields rose after reports showed record growth in the third quarter and a drop in weekly jobless claims.In Europe, stocks edged lower. The euro extended its decline after the European Central Bank paved the way for a package of fresh easing in December to deal with a worsening economic outlook.Even with Thursday’s gains, global equities are headed for the worst weekly decline since March amid new lockdown measures and U.S. politicians’ failure to agree to a stimulus plan before the Nov. 3 election. The Covid-19 surge in the Midwest rose to a record, led by single-day highs in Kansas, Iowa and South Dakota as the region’s outbreak spread toward both coasts.“The market clearly has concerns about Covid and shutdowns but it would not surprise me at all if in a week or two there’s a completely different narrative,” said Evan Brown, head of multi-asset strategy at UBS Asset Management. “Ultimately we’re going to get a safe and effective vaccine.”Facebook and Alphabet are expected to report revenue growth aided by a rebound in the market for digital-advertising when they release third-quarter earnings later Thursday. Performance by peers Snap Inc. and Pinterest Inc. suggest that user growth generated by pandemic lockdowns is starting to boost spending as brands shift ad budgets to online platforms.Stocks slumped in Asia, with losses for the main indexes in Japan, Australia and Hong Kong.Here are the main market moves:StocksThe S&P 500 Index rose 1.8% as of 2:13 p.m. New York time.The Nasdaq 100 Index increased 2.4%.The Stoxx Europe 600 Index fell 0.1%.The MSCI Asia Pacific Index decreased 0.3%.CurrenciesThe Bloomberg Dollar Spot Index increased 0.5%.The British pound declined 0.6% to $1.2908.The euro weakened 0.8% to $1.1652.The Japanese yen fell 0.3% to 104.68 per dollar.BondsThe yield on 10-year Treasuries rose five basis points to 0.83%.Germany’s 10-year yield declined one basis point to -0.64%.Britain’s 10-year yield rose one basis point to 0.22%.CommoditiesWTI crude declined 2.8% to $36.32 a barrel.Gold weakened 0.5% to $1,858.58 an ounce.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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