U.S. stocks surged,
with the Standard & Poor’s 500 Index’s second-best gain this year,
after a late rally in Chinese stock markets led global equities higher.
The S&P 500 jumped 2.5 percent to 1,969.28 at 4 p.m. in New York, after the gauge’s second-biggest weekly retreat this year.
Equities around the
world climbed today, led by China. A rally in Shanghai in the final hour
of trading followed a pattern that has recently suggested state
intervention to prop up the nation’s equities. U.S. stocks have turned
more volatile in recent weeks amid concerns that a Chinese economic
slowdown will weigh on global growth, while investors bet the Federal
Reserve is on course this year for its first interest-rate increase
since 2006.
The S&P 500 swung
up or down an average of 2 percent a day for more than two weeks through
Friday, while before Aug. 20, the 2015 average was around 0.6 percent.
In 10 of the last 13 days, the benchmark has closed with a move of at
least 1.3 percent. The Chicago Board Options Exchange Volatility Index
had posted 11 straight sessions above 25, a level that before August it
touched on just five days since 2011.
Investors remain
confident the Fed will raise borrowing costs this year, even as they
pare bets on policy makers deciding to do so at a meeting next week.
Traders are pricing in a 30 percent chance the central bank will
increase rates at this month’s gathering, down from 48 percent before
China’s currency devaluation on Aug. 11. Odds of a move at the December
meeting are 59 percent, according to data compiled by Bloomberg.
All of the S&P
500’s 10 main industries climbed at least 1.3 percent Tuesday, with
industrial, raw-material, health-care and technology companies rising
the most, up more than 2.4 percent.
Source: Bloomberg
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