The S&P 500 and the Nasdaq both closed at their highest levels on Monday, with the S&P hitting a new record for the first time since July.
Why it matters: The S&P broke out of the tight range it has been trading in for more than three months, as confidence appears to be flowing back through the market.
The big picture: U.S. Treasury yields also jumped, with the benchmark 10-year note rising to its highest since mid-September, signaling that bond investors also see hallmarks of an improving economic story and the possibility for inflation to rise.
- MSCI’s All Country World Index, which tracks stocks in 47 countries, hit its highest intraday level since February 2018.
What's happening: The extension of Brexit to Jan. 31, a pause in the U.S.-China trade war and near-certain expectations that the Fed will cut U.S. interest rates on Wednesday are all driving risk appetite.
Watch this space: This could be the first year during which stocks, bonds, gold and crude oil all rise at least 10%, according to LPL Financial.
Go deeper: The S&P 500 shuffle