Wall Street Close: Record highs ahoy in anticipation of stimulus

Dow Jones Industrial Average added 0.49% while the S&P 500 put on 0.57%.
The Nasdaq Composite ended 0.84% higher to 12,764.

Ross J Burland FXStreet

US stocks ended on the bid on Thursday, closing higher with each of the three major indexes along with the small-cap Russell 2000 RUT finishing at record levels.

The Street is growing more optimistic about a coronavirus stimulus bill, despite there not being an agreement yet.

However, the combination of expectations and the Federal Reserve's reassurances that it is there to do what is needed, investors are looking through signs of economic strain brought on by the COVID-19 pandemic.

The S&P 500 has climbed about 15% in 2020, despite the economic destruction caused by the coronavirus.

A surge in technology outsourcing firm Accenture ACN gave the S&P 500 a major lift.

Developments on the vaccine news with Moderna Inc MRNA expecting US approval for deploying what would be the nation's second COVID-19 vaccine also helped to lift spirits.

Unofficially, the Dow Jones Industrial Average added 0.49% to end at 30,301.79 points, while the S&P 500 put on 0.57% to 3,722.43. The Nasdaq Composite ended 0.84% higher to 12,764.

The hopes for a deal overshadowed another set of bleak domestic economic data, which showed another climb in weekly jobless claims.

Overall, the data in the last couple of days has helped to reinforce the picture of a slowing economy.

The Philadelphia Fed index fell to 11.1 vs 26.3. Both employment and new orders dropped sharply.

''Lucky it seems it’s just dotting the i’s and crossing the t’s on a near USD900bn (4.9% of GDP) plan to be unveiled today or possibly tomorrow. The magnitude of the package is more than sufficient to compensate for the difference between Q3 GDP and its 2019 Q4 peak, raising expectations of a swift recovery to pre-crisis GDP,'' analysts at ANZ Bank argued.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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