Investors remained in a buying mood yesterday, driving US stocks broadly higher for the third day in a row.The latest gains added to the market's rebound from the brief, but steep slump that followed Britain's vote to leave the European Union a week ago.
While the rally suggests that traders' anxiety over Britain's departure from the EU have eased, a surge in US bond prices yesterday signalled many investors remain cautious about the possible long-term implications. As bond prices rose, the yield on the ten-year Treasury note fell to 1.47 per cent.
Consumer staples companies posted the biggest gains. Utilities stocks, a traditional safe-haven for investors seeking less risk, were a close second. Oil prices fell.
"The equity market has realised that the 'Brexit' in a vacuum by itself is not a reason to wholesale abandon equities," said David Schiegoleit, managing director of investments for the private client reserve at US Bank. "But there is still the fear that it becomes contagious with other economies in Europe."
The Dow Jones industrial average gained 235.31 points, or 1.3 per cent, to 17,929.99. The Standard & Poor's 500 index rose 28.09 points, or 1.4 per cent, to 2,098.86. The Nasdaq composite added 63.43 points, or 1.3 per cent, to 4,842.67.