Growth stocks including MercadoLibre (NASDAQ: MELI) , Etsy (NASDAQ: ETSY) , and Wayfair (NYSE: W) were flying higher Monday morning as investors reacted to new fiscal policy announcements out of the U.K. and a strong earnings report from Bank of America. Investors were also looking forward to third-quarter earnings reports, which ramp up this week.
The biggest news of the day seemed to be a decision by U.K. finance minister Jeremy Hunt to ditch an earlier tax cut proposal, which had stoked concerns about inflation. He also announced an end to energy subsidies on April 1. Together, the news helped boost confidence in the U.K. economy and the British pound, weakening the U.S. dollar. The U.S. Dollar Index was down 1.2% in early afternoon trading, which is good news for global e-commerce companies like the three above, and it also boosts confidence that the global economy could avoid a recession.
As of 12:18 p.m. on Monday, MercadoLibre stock was up 12%, Etsy had gained 6.2%, and Wayfair was up 14.8%. At the same time, the Nasdaq was up 3.3%, showing growth stocks and tech stocks were gaining across the board.
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Why MercadoLibre, Etsy, and Wayfair Stocks All Popped Today