Investors are coming back from the Fourth of July ready to buy.
S&P 500 futures are up more than half a percent this morning, while European indexes are climbing by 1 percent to 2 percent despite weak trade and industrial data in Germany. Most Asian markets fell, led by a 2 percent drop in Shanghai, amid continued pessimism about the Chinese economy.
Equities have spent the last two weeks breaking out of a one-month pullback spurred by worries about higher interest rates. Economic data has continued to strengthen, however, punctuated by strong employment reports last week. Friday saw light volume after the Independence Day holiday, but the S&P 500 rose 1 percent and closed above its 50-day moving average for the first time since June 19.
— Option Monster