NEW YORK -US stocks rose Monday, with all major Wall Street indices touching the highest levels as President Donald Trump signed a US $ 2.3 trillion pandemic aid bill to the U.S. there had long been hope for regaining hope.
In a sudden turn late on Sunday, Trump shunned his threat to block the austerity bill, renewing unemployment benefits for millions of Americans and halting closure. federal government.
“Stocks are riding the coats of the extra incentive program and that’s for good reason,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management in Minneapolis, Minnesota.
“You still have monetary and fiscal incentives that are moving and clearly deliver economic stability, medical progress for COVID-19 is growing and that will appear at a faster rate now as you get it into the new year and importantly, the macro environment is favorable for stocks, ”he said.
The Dow Jones industrial average rose 219.36 points, or 0.73per percent, to 30,419.23, the S&P 500 gained 34.95 points, or 0.94per percent, to 3,738.01 and the Nasdaq Composite added 114.10 points, or 0.89per percent, to 12,918.84.
Stocks came hit by coronavirus locks, such as airlines and tour lines. The S&P 1500 airline index added 1.5per percent as carriers expect to receive US $ 15 billion in addition to payment support under new government support.
Royal Caribbean Cruises Ltd, Carnival Corp. and Norwegian Cruise Line Holdings Ltd each rose at least 4 per cent.
On a sectoral basis, benefits were driven by communications services, consumer choice and technology as each posted benefits of more than 1per percent.
After a sudden recovery from a coronavirus disaster in March, the S&P 500 is on track to rise more than 15 percent this year behind a loose monetary policy, high liquidity and the COVID-19 vaccine program. .
Despite the generally favorable conditions for equalities, concerns about recovery in coronavirus cases, the upcoming U.S. Senate runoff in Georgia and stretched evaluations could be headlines. The forward price-to-earnings ratio of the S&P is currently around 22.2, well above the long-term average of 15.3.
Thin trade volumes are expected in the last week of the year which has historically been a strong quarterly time for equities.
Democrats in the U.S. Congress on Monday will submit a proposal for higher pandemic relief payments to Americans, though they are unlikely to get a draw in the Republican – controlled Senate.
Adding to global appetite for risk, Britain and the European Union secured a post-Brexit trade deal on Thursday, while Europe’s major COVID-19 vaccine campaign was launched over the weekend.
Tesla Inc advanced 0.90per percent after a report that the electric car maker will start operations in India early next year.
Lockheed Martin Corp rose 0.41per percent after the fighter jet manufacturer claimed to deliver 123 F-35 jets in 2020, near the top end of its revised outlook.
Taking forward higher-than-expected NYSE declines with a 1.32-to-1 ratio; on Nasdaq, a 1.29-to-1 ratio of promoters was preferred.
The S&P 500 set up 35 new 52-week highs and no new levels; the Nasdaq Composite recorded 234 new heights and 13 new lights.
(Reporting by Chuck Mikolajczak; Editing by Aurora Ellis)