Stocks jumped Monday, following global equities higher, as the major indices looked to recuperate some of their losses over the past several weeks.
The Dow gained more than 400 points, or 1.5%, after the index posted its fourth straight weekly loss last week. The S&P 500 rose by more than 1.6%, as shares of Apple (AAPL), Amazon (AMZN), Facebook (FB), Microsoft (MSFT), and chipmakers including Nvidia (NVDA), Intel (INTC) and Advanced Micro Devices (AMD) advanced. “Reopening” stocks including airlines like American Airlines (AAL) and Delta (DAL), and cruise lines including Carnival Cruise Line (CCL) also rallied.
Hopes that US lawmakers might still pass another coronavirus stimulus package before the November election helped buoy risk assets, with another round of relief set to provide support to individuals and businesses hardest hit by the pandemic.
House Speaker Nancy Pelosi told CNN’s “State of the Union” on Sunday” that Democrats would soon unveil a new proposal of more than $2 trillion – a step down from the more than $3 trillion House Democrats had sought previously, but a figure still higher than the about $1.5 trillion the Trump administration suggested would be its upper bound for further virus-related relief measures.
“A potential breakthrough in the impasse over COVID-19 related stimulus seems to have lifted markets. Given how far apart the two sides were, markets had all but given up on action prior the election; therefore, those expectations, which had been pricing in over the last week or so, are being unwound a bit today,” Jamie Cox, managing partner for Harris Financial Group, said in an email to Yahoo Finance.
Earlier last week, Treasury Secretary Steven Mnuchin said he and Pelosi agreed to hold to more talks to try and work out a deal.
“When I have a conversation with the administration it is in good faith. I trust Secretary Mnuchin to represent something that can reach a solution, and I believe we can come to an agreement,” Pelosi said during the interview with CNN on Sunday.
Investors at least temporarily shrugged off concerns over a likely confirmation fight for the next Supreme Court justice. President Donald Trump named Judge Amy Coney Barrett as his now third nominee to the country’s highest court, with Senate Republicans, who hold a 53-47 majority in their chamber, suggesting they would move quickly to confirm her before the election, despite outcry from Democratic lawmakers.
Elsewhere, incrementally more positive economic data out of China also boosted early sentiment on Monday. Industrial profits in the country surged 19.1% in August for a fourth straight monthly gain, the country’s statistics bureau reported on Sunday, reflecting a sustained recovery in the economy of the country first hit by the pandemic.
4:03 p.m. ET: Stocks jump, Dow rises 411 points, or 1.5%, and Nasdaq rises 1.9%
Here were the main moves in markets as of 4:03 p.m. ET:
S&P 500 (^GSPC): +53.21 (+1.61%) to 3,351.67
Dow (^DJI): +410.36 (+1.51%) to 27,584.32
Nasdaq (^IXIC): +203.96 (+1.87%) to 11,117.53
Crude (CL=F): +$0.34 (+0.84%) to $40.59 a barrel
Gold (GC=F): +$19.40 (+1.04%) to $1,885.70 per ounce
10-year Treasury (^TNX): +0.4 bps to yield 0.6630%
2:47 p.m. ET: Crude oil settles slightly higher as energy sector leads gains in S&P 500
US crude oil prices (CL=F) settled higher by 35 cents, or 0.9%, to $40.60 per barrel on Monday, following equities higher as hopes of fiscal stimulus helped at least partially offset ongoing fears over weakened demand trends during the coronavirus pandemic.
The energy sector led gains in the S&P 500, alongside other least-loved sectors so far for the year to date including financials and industrials. Dow component Chevron gained 3.5% in intraday trading.
11:40 a.m. ET: Stocks hold sharply higher, Dow extends gains to 500 points
The three major indices held sharply higher Monday before noon, and the Dow extended its gain to more than 500 points, or 1.85%. Boeing led advances in the 30-stock index with a more than 6% rise, and each of Goldman Sachs, American Express and Dow Inc. rose at least 3%.
The financials, industrials and materials sectors led gains in the S&P 500, though all 11 major sectors were positive on the day. Big Tech shares jumped, recovering more declines from the past several weeks.
10:51 a.m. ET: Texas factory activity rises to a near two-year high in September: Dallas Fed
Factory activity in Texas expanded more than expected in September from August, according to the Dallas Federal Reserve’s monthly manufacturing index.
The Dallas Fed’s general business activity index rose to 13.6 in September from 8.0 in the previous month, topping expectations for 9.5, according to Bloomberg data. The index has now held in positive territory and risen for back-to-back months, following five consecutive months of negative readings. September’s print marked the index’s highest since November 2018.
“Labor market measures indicated stronger employment growth and a continued increase in workweek length. The employment index pushed up from 10.6 to 14.5, suggesting more robust hiring,” the Dallas Fed added in its September report.
9:31 a.m. ET: Stocks open higher as markets shake off past weeks’ losses
Here were the main moves in markets, as of 9:31 a.m. ET:
S&P 500 (^GSPC): +51.87 points (+1.6%) to 3,298.46
Dow (^DJI): +358.56 points (+1.34%) to 27,173.96
Nasdaq (^IXIC): +164.38 points (+1.55%) to 11,074.08
Crude (CL=F): +$0.37 (+0.92%) to $40.62 a barrel
Gold (GC=F): +$9.40 (+0.5%) to $1,875.70 per ounce
10-year Treasury (^TNX): unchanged to yield 0.659%
7:31 a.m. ET Monday: Stocks point to a higher open
Here were the main moves in equity markets, as of 7:31 a.m. ET Monday:
S&P 500 futures (ES=F): 3,328.5, up 1.25 points or 1.25%
Dow futures (YM=F): 27,378.00, up 335 points or 1.24%
Nasdaq futures (NQ=F): 11,315.00, up 178.5 points, or 1.6%
Crude (CL=F): +$0.05 points (+0.12%) to $40.30 a barrel
Gold (GC=F): -$5.60 (-0.3%) to $1,860.70 per ounce
10-year Treasury (^TNX): +1.5 bps to yield 0.674%