Asia Morning: Tech Stocks Lead U.S. Market Rebound

Investors were cheered up by a new $1 trillion stimulus bill proposed by Republican Senators...

Trading floor 2

On Monday, U.S. stocks rebounded. The Dow Jones Industrial Average rose 114 points (+0.43%) to 26584, the S&P 500 added 23 points (+0.74%) to 3239, and the Nasdaq 100 jumped 191 points (+1.82%) to 10674.

Nasdaq 100 Index: Daily Chart

Source: GAIN Capital, TradingView

Investors were cheered up by a new $1 trillion stimulus bill proposed by Republican Senators.

Technology Hardware & Equipment (+2.26%), Semiconductors & Semiconductor Equipment (+1.79%) and Materials (+1.41%) sectors performed the best. Tech giants like Apple (AAPL +2.37%), Amazon (AMZN +1.54%) and Alphabet (GOOG +1.21%) closed higher.

On the technical side, about 55.4% (56.4% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average, and 76.2% (83.2% in the prior session) were trading above their 20-day moving average.

The U.S. Commerce Department reported that Durable Goods Orders (preliminary readings) increased 7.3% on month in June (+6.9% expected).

Due later today is the Conference Board's Consumer Confidence Index (a fall to 94.7 in July expected).

European stocks were broadly lower. The Stoxx Europe 600 Index declined 0.31%, France's CAC 40 fell 0.34% and the U.K.'s FTSE 100 was down 0.31%. Germany's DAX ended flat.

The benchmark U.S. 10-year Treasury yield climbed further to 0.609% from 0.589% Friday.

Spot gold price showed no signs of fatigue as it surged $36.00 (+1.9%) to $1,942 an ounce, a record close. Spot silver price soared 8.1% to $24.58 an ounce, the highest level since August 2013.

U.S. WTI crude oil futures (August) advanced a further 0.8% to $41.60 a barrel.

On the forex front, the U.S. dollar kept showing weakness as traders expected the Federal Reserve, which is to hold its regular meeting this week, to maintain its easing policies. The ICE U.S. Dollar Index sank a further 0.7% to 93.65, the lowest close since June 2018.  

EUR/USD continued to show upward momentum jumping 0.8% to 1.1751, the highest level since September 2018. Germany's IFO Business Climate Index rose to 90.5 in July (89.3 expected) and Expectations Index was up to 97.0 (93.4 expected).

GBP/USD increased 0.7% to 1.2881, extending its winning streak to a seventh session. 

USD/JPY accelerated to the downside after losing the key 106.00, sinking 0.7% to 105.37, the lowest level since March 12.

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