U.S. stocks rose Tuesday as investors welcomed progress in talks on the economic aid package in Washington.
The S&P 500 rose 1.2% and reversed four consecutive days of losses, the longest series of losses for the index since September.
The Dow Jones Industrial Average rose by 340 points or 1.2%. Meanwhile, the Nasdaq Composite, a high-tech product, has won 1%.
A bipartisan group of lawmakers on Monday urged congressional leaders to come up with a $748 billion spending package that would avoid the thorny issues blocking the deal. The four congressional leaders should meet Tuesday afternoon to discuss a coronavirus aid package and a bill for the end of the year.
Investors have kept a close eye on the prospects of a recovery agreement, especially as the potential for further lockdowns of Covid 19 has increased in the coming months. Despite the first use of the Covid 19 vaccine, the
Pfizer
and BioNTech in the United States on Monday, the country is still facing a potentially difficult winter as Covid 19 cases continue to rise.
The S&P 500 was hoping to reverse its recent daily downward trend.
Photo:
Angela Weiss/French Press Agency/Getty Images
The news about [the vaccine] is there, and now the market is just digesting some of that [November] progress and looking for the next catalyst as we move into next year, he said.
Keith Lerner,
Chief Market Strategist at Truist Advisory Services.
Apple shares have risen after Nikkei Asia announced that Apple plans to produce up to 96 million iPhones in the first half of next year, up nearly 30 percent from the previous year. The iPhone manufacturer’s share was 4.1%.
Stocks in the energy, banking and raw materials sectors also increased, while the Russell 2000 Small Business Equity Index increased by 2.1%. The 17% year-on-year growth of the index is now higher than the 14% growth of the S&P 500.
On the contrary: The share of different vaccine manufacturers has decreased. Pfizer declined by 1.6% and Moderna by 6%. The Food and Drug Administration said Tuesday that the Moderna Covid-19 vaccine is very effective, suggesting that it may soon be added to the pandemic arsenal. The company’s shares have increased significantly this year. Even with Tuesday’s loss, it’s still 630% higher than Tuesday’s loss.
The number of deaths of Covid-19 in the United States exceeded 300,000 on Monday, underlining that the pandemic threatens to further test the U.S. economy despite continued progress in the treatment of the coronavirus. Authorities in Boston and other nearby cities this week are tightening restrictions on Covid-19, including closing stores like Covid-19. B. in the cinema, trying to fight the growing cases of Covid-19.
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The market is facing a lot of headwinds, says Hani Redha, portfolio manager at PineBridge Investments. Both in terms of the virus itself and the risk of an increasing attack and the uncertainty about a possible additional stimulus in the United States.
Without this, recovery will be slower, Redha said, referring to the new support package.
Nevertheless, many investment managers believe that vaccines, combined with continued central bank support, will allow the recovery of equities and corporate bonds to continue until 2021. Additional support from the US government could give the markets an extra boost.
We don’t know exactly what’s going to happen here yet, says Lyn Graham-Taylor, a gambling specialist at Rabobank. The US really needs an extra fiscal stimulus to get through these winter months.
Treasury yields are likely to rise as U.S. legislators adopt a major stimulus package that stimulates growth, inflation prospects and the bond offering, Graham-Taylor added.
The yield on 10-year government bonds fell from 0.891% on Monday to 0.918%. The WSJ Dollar Index, which tracks the US currency against a basket of other currencies, fell by 0.3%.
Legislators working on the Coronavirus bill face two challenges: Supporting national and local authorities and protecting accountability. Gerald F. Seib of the WSJ explained why these issues are important and what a compromise might look like. Photo: Drew Angerer/Getty Images
U.S. industrial production increased 0.4% in November compared to the previous month, according to the Federal Reserve, indicating a continued recovery in production of mills, mines and utilities.
However, according to the Fed, total production in November remained about 5% below February’s level.
In the overseas markets, the regional Stoxx Europe 600 index rose by around 0.3%. The Shanghai Composite Index ended the mixed session with 0.1%. The Japanese Nikkei 225 was 0.2% lower.
China’s economic recovery continued in November, as evidenced by data from the National Bureau of Statistics. This means that the second largest economy in the world will be stronger shortly before the end of a turbulent year. Industrial production increased by 7% compared to the previous year, faster than economists had expected.
Email Joe Wallace at [email protected] and Caitlin McCabe at [email protected].
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