Global stocks extend biggest gains since 2020 on earnings

Global stocks extend biggest gains since 2020 on earnings

Stocks















Bloomberg

Global stocks headed for the biggest four-day rally since November 2020 as companies from the US to Europe reported better-than-forecast earnings and dip-buying returned to technology shares.

Futures on the Nasdaq 100 Index jumped 1.1%, while those on the S&P 500 added 0.4%. Europe’s Stoxx 600 Index traded above its 50-day moving average for the first time since Jan. 21. Oil was steady near a seven-year high before an Opec+ meeting on increasing supply. Treasury yields and the dollar were marginally lower.

Investors have been swinging between nervousness over Federal Reserve tightening and confidence in the economic recovery as they navigate a volatile start to the year. A robust earnings outlook is helping to ease the uncertainty, at least for the moment. However, a wall of worries including stubborn inflation, regulatory risks in China and pandemic flare-ups still lingers in the background.

“Fed tightening is still the path forward,” said Dennis DeBusschere, founder of 22V Research. “But a short term rebound in equities will continue — led by growth and cyclicals — as investors focus on a narrative of ‘peak tightening’ ahead of what is likely to be