A two-day rally for the stock market has helped to propel U.S. equity benchmarks firmly above their 50-day moving average after closing below that level on April 12 for the first time since November. The S&P 500 index was more than 1.2% above its 50-day moving average of 2,360.20 in recent trade, while the Dow Jones Industrial Average was trading about 1.3% above its short-term average of 20,732.67, according to FactSet data. Both benchmarks edged above their short-term averages on Monday, Tuesday’s rally has intensified that move. The Dow has gained 460 points, and the S&P 500 has surged about 40 points since Friday’s close, as investors fear of global volatility eased following France’s first-round election won by Emmanuel Macron, who’s strong showing in a Sunday presidential vote helped to assuage fears that two anti-European Union candidates would make the final runoff. Early polls show Macron going into the second and final round of elections with a healthy lead over far-right candidate Marine Le Pen, who has threatened to pull France out of the EU. Better-than-expected earnings on Tuesday and President Donald Trump’s promise to deliver the outline of a corporate tax-cut plan on Wednesday also has helped to fuel the recent sharp climb in global equities. Technical analysts tend to use moving averages to help determine an assets short-term or long-term trend. Meanwhile, the Nasdaq Composite Index touched a psychologically significant level, surpassing 6,000 for the first time ever.
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