All three major US indexes have gained since Friday when a weak U.S.jobs report led to expectations that the Federal Reserve would not raise interest rates this year, meaning the era of near-zero interest rates would continue. Stocks had trimmed a few of their gains earlier in the session after the Institute for Supply Management’s nonmanufacturing index, a measure of the services side of the economy, came in lower than expected at its lowest readings since June. Hong Kong’s Hang Seng rose 0.1 percent to 21,875.34.
DuPont surged 10 percent after announcing that its embattled CEO Ella Kullman would leave. The beta value for this stock stands at 1.38 points.
Global markets have been volatile since fears over a slowdown in the Chinese economy and its impact on global growth mounted in August, following China’s devaluation of its currency.
<strong>Europeanstrong> sharesstrong> were higher, extending strong gains in the previous session, with sentiment helped by expectations central banks in Europe and the United States will keep an equity-friendly monetary policy in the coming months. Australia’s S&P/ASX 200 was up 0.3 percent to 5,167.40.
Biotech shares have been lately seeing sharp declines after the Democratic presidential candidate Hillary Clinton publically opposed a sudden price rise in certain life saving drugs and declared to take on the pharmaceutical companies on this issue.
Pepsi (PEP.N) rose 1.4 percent after it reported better-than-expected quarterly results and raised its forecast for the year. The Standard & Poor’s 500 index (^GSPC) lost 0.4 percent to 1,979.92 and the Nasdaq composite (^IXIC) dropped 0.7 percent to finish the day at 4,748.36. Energy stocks climbed as the price of crude oil rose sharply.
The Dow Jones Industrial Average (DJIA) is on track for a third straight daily win – while the broader S&P 500 Index (SPX) is struggling to reach its sixth – as traders gear up for the start of earnings season.
Significant weakness is also visible among pharmaceutical stocks, as reflected by the 2.6 percent loss being posted by the NYSE Arca Pharmaceutical Index. On the Nasdaq, 1,554 issues fell and 1,233 advanced.
An unexpected chief executive resignation at DuPont lifted the Dow in opening trade Tuesday as the S&P 500 and Nasdaq edged lower.