US stocks end with strong gains

Indices rise as Brexit fear somewhat wanes

U.S. stocks closed up on Monday, 20 June 2016 but off their session highs, following the lead of European markets as polls showed support swinging back toward the U.K. remaining a member of the European Union ahead of a referendum. The so-called Brexit vote is set for Thursday and investors have been following it closely for fear that Britain's exit from Europe's trading block could unsettle global markets.

The Dow Jones Industrial Average which had climbed as much as 271 points earlier in the session, closed up 129.71 points, or 0.7%, at 17,804.87. The Nasdaq Composite Index advanced 36.88 points, or 0.8%, to close at 4,837.21, after being up as much as 82 points. The S&P 500 index gained 12.03 points, or 0.6%, to close at 2,083.25, with a broad swath of sectors climbing.

Of the 10 main sectors, four were up 1% or more, led by the energy sector, while utilities was the only lagging sector. The gains were led by a rally in shares of Boeing, Goldman Sachs and 3M.

The stock market began its week on a higher note as investors eyed a rally in global equities following a reversal in Brexit polls. However, the equity indices finished off their highs due to a sell off in the final hour. Global investors shed their risk-off posture overnight as participants eyed a shift towards the "Remain" camp in the latest round of Brexit polling.

Equities continued to slip through the afternoon. The fading conviction in the final hour of trade was likely related to concerns that there could be another shift in Brexit polling overnight, as well as the recognition that Fed Chair Yellen will be providing the first day of her semiannual monetary policy testimony on Tuesday in front of the Senate Banking Committee.

Crude oil futures finished at their highest level in more than a week on Monday, 20 June 2016 as global stock markets soared as opinion polls indicated the U.K. was more likely to remain in the European Union. Natural-gas futures, meanwhile, rallied to their highest level since September as warmer weather forecasts for the next several days pointed to higher demand for the commodity.

July West Texas Intermediate tacked on $1.39, or 2.9%, to settle at $49.37 a barrel on the New York Mercantile Exchange. The July contract expires at Tuesday's settlement and August will become the front month for WTI. August Brent crude rose $1.48, or 3%, to $50.65 a barrel on London's ICE Futures exchange.

Bullion metals finished higher on Monday, 20 June 2016 as global stock markets soared as opinion polls indicated the U.K. was more likely to remain in the European Union. A weak dollar also boosted prices.

In precious metals, gold closes near highs of the day, just shy of the previous session's closing price as the dollar shows marked weakness. August gold ended today's session down $2.70 (-0.2%) to $1292.20/oz. Silver trades flat in the afternoon after a modest early morning rally, closing higher on the day July silver closed today's session $0.09 higher (+0.5%) at $17.51/oz.

The Treasury complex settled near its lows. The yield on the 10-yr note rose six basis points to 1.67% as some of last week's safe-haven positioning trades were unwound.

There was no economic data of note released today.

Tomorrow's economic calendar is again noticeably light, but Fed Chair Yellen is scheduled to begin her biannual testimony before Congress at 10:00 ET. Ms. Yellen will be addressing the Senate Banking Committee and the House Financial Services Committee on Tuesday and Wednesday, respectively.

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