Global stock markets mostly rose Friday at the end of a strong week for equities, with Frankfurt and Wall Street continuing a record-breaking run as investors set their sights on a huge USA stimulus package.
The S&P 500 stock index added 0.4% while tech-heavy Nasdaq Composite advanced 0.8%. The S&P 500 gained 20.89 points, or 0.55%, to 3,824.68 and the Nasdaq Composite added 134.50 points, or 1.03%, to 13,201.98.
The rally was broad-based, though the S&P 500′s technology sector notched the biggest gain, recouping losses after a pullback a day earlier.
Rate-sensitive bank shares gained 3.3%, tracking a surge in the benchmark 10-year US Treasury yield.
"It's wonderful how sensitive we are to the slightest tweaking of when and how big the stimulus will be", said Ed Moya, senior market analyst at OANDA in NY.
A much worse than expected jobs report on Wednesday underscored how fragile the US economy is because of the worsening pandemic.
Oil prices reached 10-month highs, continuing to benefit from news earlier in the week that Saudi Arabia plans to trim its crude output. The S&P 500 climbed 1.5 percent to exceed 3,800 for the first time.
Advancing issues outnumbered declining ones on the NYSE by a 1.72-to-1 ratio; on Nasdaq, a 2.98-to-1 ratio favored advancers.
Stocks rose on Wall Street Wednesday on expectations that Washington will deliver more stimulus for the economy, though some of the gains faded by late afternoon as political unrest gripped the nation's capital.
The prospect of another massive splurge in the U.S. economy helped divert attention from soaring Covid-19 infection and death rates that have forced governments to once again lock down as they try to quickly roll out vaccinations. The soft majority paves the way for President-elect Joe Biden to pass more progressive policy, including fiscal relief meant to drive the USA out of the coronavirus recession. "You're going to need something to shore up those people".
Another encouraging point for many investors is that Democrats will have only a thin majority in the Senate.
"With more stimulus coming, even if we do have a miss on claims, it's going to be a little bit less severe, because we know there's going to be a bigger back up for those who are recently unemployed", said Max Gokhman, head of asset allocation at Pacific Life Fund Advisors in Newport Beach, California.
Japan's Nikkei 225 index rose 2.4% to hit the highest level since 1990, led by chip maker stocks, after the Japanese government declared a new state of emergency in Tokyo to try to control the spread of Covid-19.
Hong Kong's Hang Seng rose 1.2% by the close, with Geely Automobile Holdings jumping almost 20% following broker upgrades and a report that Geely's parent would join with Chinese search-engine operator Baidu to make electric vehicles.