Nasdaq hits fresh high as Brazilian assets rally
QQQ•The Nasdaq rose 1% to a fresh high on Monday, while the S&P 500 gained 0.7% and the Dow rose 0.2%. Brazilian stocks climbed 8% and the real rose 4% after Flavio Bolsonaro’s strong first-round election showing.
1. Nasdaq reaches new high
Earnings optimism and lower oil prices offset rising bond yields as the Nasdaq gained 1% to a fresh high. The S&P 500 rose 0.7% and the Dow added 0.2%; every S&P 500 sector advanced except real estate. Nvidia gained 2% to a record high.
2. Brazilian assets surge
Brazilian stocks rose 8%, their biggest gain this century outside the global financial crisis and pandemic, while the real climbed 4%, its biggest rise in four years. The moves followed Flavio Bolsonaro’s stronger-than-expected first-round showing in Sunday’s presidential election. Betting markets indicated an 83% likelihood he would win the runoff in three weeks.
3. Yields and currencies move
US 10-year and 30-year Treasury yields closed at their highest levels in more than two decades. The dollar index reached an 18-month high, while the euro fell 0.3% to a 17-month low. Oil declined 2%, and gold was little changed above $4,100 an ounce.
