You are here: Home » International » News » Markets
Business Standard

Tech stocks extend Wall Street rally as investors bet on stimulus

Apple Inc was a major support for the three main stock indexes with a 3.6 per cent gain ahead of a special event on Tuesday

Topics
Wall Street | US stocks | S&P 500

Reuters 

coronavirus, wall street, markets
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

Wall Street's main indexes rose for a fourth straight session on Monday, helped by a tech boost and on optimism that Washington would reach a deal over more fiscal support, with investors also gearing up for the third-quarter corporate earnings season.

Apple Inc was a major support for the three main stock indexes with a 3.6 per cent gain ahead of a special event on Tuesday, which most analysts believe will be used to unveil the new iPhone with 5G capabilities.Amazon.com Inc climbed 3.5 per cent ahead of its annual Prime Day shopping event on Oct. 13 and 14.

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.

"The widening lead for the Democrats lessens the likelihood of a disputed election result and increases the odds of a bigger stimulus package and infrastructure spending in 2021," said Marc Chaikin, founder of Philadelphia-based investment research firm Chaikin Analytics.

A recent Reuters/Ipsos poll showed Americans were steadily losing confidence in President Donald Trump's handling of the Covid-19 pandemic, with his net approval on the issue hitting a record low.

Growing expectations of a Democratic win in next month's presidential election have also helped Wall Street's main indexes climb to one-month highs as a victory for Democratic nominee Joe Biden could ease the trade war with China and resulting tariff pressures on the US economy.

With the Oct. 15 presidential debate officially canceled, Trump plans to travel to key battleground states this week as his doctor declared he was no longer a transmission risk for the novel coronavirus.

Results from big US banks will be in focus this week, with JPMorgan & Co and Citigroup set to report on Tuesday. Bank shares gained 0.7 per cent.Overall, analysts expect third-quarter earnings for companies to have fallen 20.7 per cent from a year earlier, smaller than a 30.6 per cent slump in the second quarter.

At 10:49 a.m. ET, the Industrial Average was up 181.99 points, or 0.64 per cent, at 28,768.89, the was up 35.66 points, or 1.03 per cent, at 3,512.79, and the Nasdaq Composite was up 181.30 points, or 1.57 per cent, at 11,761.24.Technology and consumer discretionary stocks climbed the most among major S&P sectors. The energy index was the weak spot, as oil prices dropped on easing supply worries.

Twitter Inc gained 5.2 per cent after Deutsche Bank upgraded the social media firm's shares to "buy" on expectations of continued growth in 2021.Ford Motor Co jumped 7.8 per cent following brokerage Benchmark's upgrade.

Advancing issues outnumbered decliners for a 1.44-to-1 ratio on the NYSE and a 1.53-to-1 ratio on the Nasdaq.

The S&P index recorded 61 new 52-week highs and no new low, while the Nasdaq recorded 138 new highs and seven new lows.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, October 12 2020. 21:04 IST
RECOMMENDED FOR YOU
.