US shares benefit from positive sentiment

US shares are surging for the second successive day despite being during the US trading session. The major indices prepare to post solid gains in the week, within 4% to 6% range.

The S&P 500 reclaimed the 3,800 mark; around 3,887.19 and is up by 2.74% in the day, while the heavy-tech index, the Nasdaq Composite, followed suit, gaining 2.36%, up at 11,498.82, followed by the Dow Jones Industrial, climbing 2.15%, advancing to 31,330.63.

US shares jumped as investors still monitor the Fed’s rate hike expectations. Fears of a US and global recessions loom due to Thursday’s EU, UK, and US S&P Global PMIs data, all expanding but showing signs of slowing down. Traders begin to price in possible rate cuts, which appears too early to be predicted, as the global economy settles on higher interest rates.

The leading sectors are Financials, up by 3.43 %, followed by Communication Services and Materials, each recording gains of 3.16 % and 3.11%, respectively. The laggards but also up due to the increased risk appetite are Health, Consumer Staples, and Utilities, recording decent gains of 1.46%, 1.27%, and 0.92% each.

Later in the day, the University of Michigan Consumer Sentiment, on its June final reading, plunged towards 50, dismal reading but inflation expectations eased a relief for investors, which piled in on equities as we head into the weekend.