Tech companies rallied Tuesday. Which ones gained the most?

Tech companies rallied Tuesday. Which ones gained the most?

Tech companies surged forward, boosting U.S. equities as investors bought work-from-home winners. However, the U.S. dollar tumbled down to a two-year low on growing conviction that interest rates will stay extremely low for the near future.

The S&P 500 Index soared by 0.2%. The MSCI Asia Pacific Index also rallied by 0.4%, while the MSCI Emerging Market Index skyrocketed by 1.3%.On the other hand, the Stoxx Europe 600 Index tumbled down by 0.8%.

The Nasdaq 100 reached a record high as Zoom Video Communications Inc. dominated in companies well-positioned for stay-at-home orders. Apple Inc. also managed to boost the S&P 500 higher, even as most of its members lowered. However, the Stoxx Europe 600 fell due to travel companies. Still, the euro strengthened to just below $1.20, and the yield on 10-year Treasuries rose.

The Federal Reserve announced last week that policymakers would be more accommodative to juice inflation. After that, stocks have jumped higher, but the dollar has dropped. Meanwhile, Chinese factory data signaled increasing global demand for manufactured goods after the initial shock of the Covid-19 pandemic. Data in Europe also indicates a positive outlook for growth. 

Will the dollar remain weak? 

Savvas Savouri, the chief economist at Toscafund Asset Management, stated that the weakness in the greenback is likely to continue. He suspects that the dollar will be substantially weaker from where it is now against the euro by the end of the year. The Fed chairman is clearly declaring that he wants inflation to ratchet upwards. The only reliable way to achieve this is through the channel of a weaker currency, added Savouri.

In Asia, the stock market fluctuated on Monday, with equity indexes mixed. South Korean shares climbed up, but Australia’s stock benchmark tumbled down to the lowest since early August. Investors are waiting for data on Australia’s GDP, which is due on Wednesday. Furthermore, U.S. jobless claims are also due on Thursday.

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