US stocks rallied on Monday (20 June) to end higher as new polls show support turning back towards the Remain camp in the upcoming EU referendum. Concerns that the UK's potential exit from the European Union could disrupt global markets has begun to wane following the latest poll results.
The Dow Jones Industrial Average surged 129.71 points, or 0.7%, to settle at 17,804.87 after earlier being up by as much as 271 points. Gains were led by a rise in shares of 3M Co, Goldman Sachs Group Inc and Boeing Co, according to MarketWatch.
The S&P 500 advanced 12.03 points, or 0.6%, to end at 2,083.25. Nine of the index's 10 main sectors ended higher, with energy leading four sectors up by 1% or more. Utilities, however, trailed behind closing 0.3% lower.
The Nasdaq Composite gained 36.88 points, or 0.8%, to close at 4,837.21. MarketWatch noted the index had been up by as much as 82 points earlier in the session. The iShares Nasdaq Biotechnology ETF (IBB) closed off session highs to settle 1% higher.
"We're basically putting on what Brexit took off last week," Mark Luschini, chief investment investment strategist at Janney Montgomery Scott, told CNBC. "I think we're going to be held hostage to [Thursday's] vote."
Mike Antonelli, equity sales trader at Robert W Baird & Co, however, told MarketWatch: "A "Remain" poll isn't a reason to own the market. It's an event that catches people leaning in the wrong direction." He added the new poll "sparks the rally but it's generally not enough to complete the rally."
Analysts are expecting the following week to be stormy until the Brexit referendum is decided, MarketWatch reported.
"The odds of the UK leaving the EU have fallen bellow 30% again, but there are at least five more polls to go, and given the 130% increase in [the pound against the US dollar] 1-week implied options volatility on Friday, this is still a market that is fragile and happy to turn on a dime," Chris Weston, chief market strategist at IG, told investors on 20 June.
Overseas, European and Asian markets closed higher, with the Euro STOXX 600 surging more than 3.5% and the Nikkei 225 closing 2.3% higher. The US dollar index was down more than a half a percent lower, with the euro by $1.131 and the yen near 103.9 yen against the greenback. The pound sterling rose over 2% against the dollar to trade around $1.467.
The CBOE Volatility Index (VIX), which is considered as the fear gauge, dropped to near 18.
Treasury yields rose, with the 10-year yield at 1.67% and the 2-year yield around 0.73%. CNBC reported that the 10-year German bund yield was in positive territory after falling into negative territory for the first time last week.
Gold futures for August delivery dropped $2.70 (£1.84;€2.39) to settle at $1,292.10 (£880.54;€1,142.09) an ounce. Oil prices rose $1.39 (£0.95;€1.23), or 2.9%, to settle at $49.37 (£33.64;€43.64) a barrel.