The S&P500 (+0.23%) finally closed above its February, and all-time high. This was the fastest rebound from a bear market after the pandemic-induced sell-off erased more than 20% of its value in the first quarter of the year.
Nasdaq closed 0.73% higher.
In corporate news, Walmart’s second quarter results crushed analyst estimates as the online sales were nearly doubled due to the pandemic boost in e-commerce. But last month’s comparable sales growth failed to keep up with the good 2Q results on the back of waning government support and the delay in the agreement for the next round of fiscal aid.
Happily, soothing news came from the political front, as House speaker Nancy Pelosi said Democrats may scale back on their stimulus plans to find a common ground with Republicans to pass the much-needed fiscal rescue package and review the deal for additional items after the November election. Pelosi’s constructive comments pleased investors, who have been showing no signs of stress regarding Joe Biden’s lead over Donald Trump for the upcoming election.
News on US-China front was less encouraging. Chinese equities edged lower as Donald Trump ordered US colleges to divest from Chinese stocks. Escalating US-China tensions remain on the back of investors’ head, without however having a crucial impact on the overall market sentiment for now. Meanwhile, trade tensions arise between China and Australia, as Beijing ordered an anti-dumping probe against Australian wine imports. The AUDUSD remained bid, as stocks in Sydney (+0.75%) eked out gains despite tensions. But, China is Australia’s biggest trading partner by far, and deteriorating relations could heavily weigh on the Australian economy already ravaged by the pandemic.
Elsewhere, Nikkei added 0.20% despite a surprise 7.6% slump in June machinery orders versus a 2% rebound expected by analysts. But July exports contracted less than expected, even though the strong yen continues being a barrier to the recovery in Japanese goods foreign demand.
Activity on FTSE (+0.31%) and DAX futures (+0.21%) hint at a flat-to-positive open on Wednesday following an eventless Tuesday trading session.
