Markets rise amid “fear of missing out”

Markets rose on Tuesday.

The S&P 500 rose 0.2 percent, the STOXX Europe 600 rose 0.4 percent and the Nikkei 225 rose 0.8 percent.

Results of a survey by Bank of America Merrill Lynch released on Tuesday showed that fund managers have made a huge switch from cash into stocks.

“Investors are experiencing Fomo—the fear of missing out—which has prompted a wave of optimism and jump in exposure to equities and cyclicals,” said Michael Hartnett, chief investment strategist at BAML.

Technical research strategists at Bank of America Merrill Lynch support the optimism.

“Last week’s push above SPX 3,063 is an uncomfortable breakout for many who viewed the SPX pattern as bearish,” the strategists, Stephen Suttmeier and Jordan Young, wrote.

“History suggests that breakouts from these ranges should be powerful,” they added.