The stock markets in the United States and other countries across the globe surged on Monday, driven by the fact that the possibility of Britain exiting (Brexit) the European Union subsided.
The Dow Jones Industrial Average (DJIA) climbed 0.73% to 17,804.87 points and the S&P 500 gained 0.58% to 2,083.25 points. The NASDAQ and Russell 2000 went up 0.77% to 4,837.21 points and 1.14% to 1,157.70 points respectively.
Last week, investors’ concern regarding the chances of Britain leaving the EU and the uncertainties of its impact sent the global stock markets down. The campaign for the Britain to remain in the EU seemed to be gaining more support since the murder of British lawmaker Jo Cox, a rising star in the Labor Party. Cox is a strong advocate for the campaign.
Markets more comfortable with Britain remaining in the EU
Bloomberg noted the survey over the weekend, which showed that 45% of voters support “Remain” camp while 42% favor Brexit.
Mark Kepner, a managing director and equity trader at Themis Trading, commented, “We’re kind of going back to that risk-on again — it’s more an unwind of the panic we saw last week. It seems to be because of what’s changing in the vote. The market was starting to prepare for a Brexit and it seems the polls in the U.K have changed since late last week.”
On the other hand, Kathleen Brooks, a research director at Gain Capital Holdings in London, said, “The markets have always been more comfortable with the U.K. remaining in the European Union, hence the boost to risk sentiment now that the ‘Remain’ camp’s campaign appears to be back on track.”
Market movers
The stock price of Amazon.com (NASDAQ:AMZN) increased 1.08% to $714.01 per share. The e-commerce giant partnered with Vodafone to bring in hesitant customers in India.
Priceline Group (NASDAQ:PCLN) gained 2.5% to $1,341.96 per share. The company was selected by Trade-Ideas LLC as a strong on high relative volume candidate.
Twitter (NYSE:TWTR) increased 1.49% to $16.34 per share. The microblogging company acquired Magic Pony Technology, a machine learning startup based in London. Twitter CEO Jack Dorsey said “machine learning is increasingly at the core of everything” they’re building in the company. He believes that Magic Pony could strengthen Twitter’s teams in deep learning.
The shares of Conatus Pharmaceuticals (NASDAQ:CNAT) surged more than 16% to $16.15 per share. The company is among the biggest gainers on NASDAQ today.
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