NEW YORK: U.S. stocks rose Tuesday in relatively quiet trading as investors refrained from making big moves ahead of the U.K.’s vote on whether to leave the European Union.
Markets have moved in tandem with polls around Britain’s referendum, which have triggered steep movements in equities, bonds and currencies around the world. In the past week, stock markets have fallen sharply when polls tilted toward an exit vote, and rebounded just as quickly when they veered toward “remain.”
Portfolio managers said many investors, having already positioned themselves, are waiting on the results of Thursday’s vote before making any significant moves.
“Investors aren’t willing to commit to anything ahead of the referendum,” said Remi Olu-Pitan, multiasset fund manager at Schroders.
Stocks were little changed earlier in the session after Federal Reserve Chairwoman Janet Yellen delivered her semiannual testimony to the Senate Banking Committee. While Ms. Yellen struck a slightly cautious note, investors said her remarks were largely in line with what they had expected.
The Dow Jones Industrial Average rose 24.86 points, or 0.1%, to 17829.73, rising for a second consecutive day. The S&P 500 climbed 5.65, or 0.3%, to 2088.90, and the Nasdaq Composite Index gained 6.55, or 0.1%, to 4843.76.
Energy stocks in the S&P 500 rallied 1.1% Tuesday to end the day as the best-performing sector of the index even as U.S. crude-oil futures prices dropped 1.1% to $48.85 a barrel on the New York Mercantile Exchange.
Relatively light activity on the trading floors is another sign that “until there’s a decision on the vote, we’re being held hostage by ‘Brexit,’” said Kenny Polcari, director of equities at O’Neil Strategies, as the vote on Britain’s exit from the EU is called. Tuesday’s gains were made on the 10th lowest-volume day of the year.
On June 23, the U.K. votes on whether to stay in or leave the European Union. It’s difficult to know exactly what will happen if voters choose leave, but that hasn’t stopped both sides of the debate from predicting the future. So, here are three things we definitely don’t know about ‘Brexit.’
Federal Reserve Chairwoman Janet Yellen testifies before a Senate committee on Tuesday.
Recent polls have been mixed, but betting markets have increasingly pointed to a victory for “remain,” lifting stocks in Europe. The Stoxx Europe 600 added 0.7%, its third consecutive day of gains. London’s FTSE 100 rose 0.4%.
Gold for June delivery fell 1.5% to $1,270.50 an ounce. The metal is being used as a hedge against Brexit risks, and its decline reflects investors being more optimistic that the “remain” camp will win, said Ms. Olu-Pitan of Schroders.
