Stock markets rallied on Tuesday. The S&P 500 gained 1%, and the Nasdaq 100 jumped by 0.5% after data showed that American manufacturing is nearing expansion. U.S. President Donald Trump is supporting plans for another stimulus, which further encouraged investors.
There was a massive sell-off recently due to a new surge in coronavirus cases. Anthony Fauci, the U.S.’s top infectious-disease doctor, stated on Tuesday that coronavirus isn’t taking a summer break. Its persistent spread in the U.S. is proof of that.
Despite fears of another wave of the pandemic, the S&P 500 surged forward, hitting a two-week high. Investors continue to focus on signs that the U.S. economy is rebounding from the shutdown.
There was then a short pullback. During this, futures collapsed after a White House adviser said the trade deal with China was over. Even though investors are still on edge, stocks rallied again on Tuesday after President Donald Trump contradicted that statement.
What about the European and Asian stocks?
European and Asian futures also skyrocketed on Tuesday. The Euro Stoxx 600 Index rallied by 1.2%, and MSCI Asia Pacific Index soared by 0.9%.
In Europe, Bayer AG jumped by more than 7% after announcing that it is close to resolving the litigation over its Roundup weedkiller. Meanwhile, carmakers and banks gained the most in the Stoxx Europe 600 index thanks to positive economic data in the euro area.
PMIs for June were due on Tuesday. Investors were waiting for them to show business activity in the world’s largest economy, and see continuing a recovery that started in May. They hope that trillions of dollars in stimulus from governments and central banks around the world will shield economies from new virus breakouts.
Euro-area PMI gauges fueled a risk-on mood earlier. However, they also highlighted the pressures a long and slow rebound would impose on firms struggling with weak demand.