- The Dow Jones Industrial Average climbed 0.88%.
- The S&P 500 added 1.64%.
- The Nasdaq Composite put on 2.56%.
Wall Street's benchmark stock indices rallied strongly on Monday.
The S&P 500 was about 1% below its record closing high from Sept. 2, nearly recovering from most of a 9% pullback last month.
The moves were fueled by expectations of a coronavirus relief package. It looks like the administration wants a deal done before the election which has lead to a rally in Amazon, Apple and other technology stocks ahead quarterly earnings season.
Optimistic sentiment dominated after the Trump administration on Sunday called on Congress to pass a stripped-down coronavirus relief bill as negotiations on a broader package ran into resistance.
Apple Inc AAPL jumped 6.4%, adding $128 billion to its stock market value, ahead of an event on Tuesday, when it is expected to unveil its newest iPhones.
Amazon AMZN rallied 4.8% ahead of its annual Prime Day shopping event on October 13 and 14.
Microsoft MSFT jumped 2.6%, helping lift the S&P 500 information technology index 2.7%.
The Dow Jones Industrial Average climbed 0.88% to end at 28,837.52 points, while the S&P 500 added 1.64% to 3,534.22. The Nasdaq Composite put on 2.56% to 11,876.26.
However, fiscally conservative Republicans failed to back the latest White House proposal (USD1.8trn) given constituents’ concerns about the rapidly ballooning budget deficit, analysts at ANZ Bank explained.
''CBO projects that the budget deficit for 2020 will amount to USD3.3trn, or 16% of GDP – the largest since 1945 as federal outlays hit 32% of GDP. The deficit, without any additional stimulus, is projected at 8.6% of GDP for 2021.
Some Republicans are also concerned that agreeing a large stimulus at this late stage would hand the Democrats a fiscal victory on the eve of the Presidential and Congressional elections.
We remain sceptical that a deal will be agreed soon, and that leaves the US recovery vulnerable to downside risks in coming months.''
S&P 500 levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD: A tough barrier remains around 0.6800
AUD/USD failed to maintain the earlier surpass of the 0.6800 barrier, eventually succumbing to the late rebound in the Greenback following the Fed’s decision to lower its interest rates by 50 bps.
EUR/USD still targets the 2024 peaks around 1.1200
EUR/USD added to Tuesday’s losses after the post-FOMC rebound in the US Dollar prompted the pair to give away earlier gains to three-week highs in the 1.1185-1.1190 band.
Gold surrenders gains and drops to weekly lows near $2,550
Gold prices reverses the initial uptick to record highs around the $$2,600 per ounce troy, coming under renewed downside pressure and revisiting the $2,550 zone amidst the late recovery in the US Dollar.
Australian Unemployment Rate expected to hold steady at 4.2% in August
The Australian Bureau of Statistics will release the monthly employment report at 1:30 GMT on Thursday. The country is expected to have added 25K new positions in August, while the Unemployment Rate is foreseen to remain steady at 4.2%.
Ethereum could rally to $2,817 following Fed's 50 bps rate cut
Ethereum (ETH) is trading above $2,330 on Wednesday as the market is recovering following the Federal Reserve's (Fed) decision to cut interest rates by 50 basis points. Meanwhile, Ethereum exchange-traded funds (ETF) recorded $15.1 million in outflows.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.