© Reuters. The US flag is seen on a building on Wall St. from the New York financial district
By Ambar Warrick and Shreyashi Sanyal
(Reuters) – US stock indexes rose on Tuesday as progress towards a massive government spending bill and measures to cut COVID-19 remained high, while investors waited for new economic indices at the last meeting of the year. federal.
Apple Inc. (NASDAQ 🙂 was the top driver for the Dow and Nasdaq, rising 4% to a three-month high after a report said it plans to increase iPhone production by 30% in the first half of 2021.
Congress talks were underway late Monday to agree on a bill to prevent the government from closing, with Democratic and Republican leaders appearing more optimistic about including a new round of aid for coronavirus, the first new aid measure in the world. April.
Markets have moved in tandem with developments in a bill, which is expected to further offset the economic impact of the virus outbreak and maintain high liquidity.
But concerns over the bill’s timing, as well as rising numbers of deaths from the US coronavirus, led to a four-day loss on Monday, despite optimism about launching a national vaccination program.
“There is likely to be a certain amount of stimulus, but investors really hope to have a stronger response to the current situation,” said Rick Meckler, a partner at Cherry Lane Investments in New Jersey.
At 9:54 am ET, it rose 133.99 points, or 0.45%, to 29,995.54, the S&P 500 rose 26.03 points, or 0.71%, to 3,673.52. It increased by 105.53 points, or 0.85%, to 12,545.57.
Technology stocks were the best performing S&P 500 in early trading.
Increased liquidity and ultra-low loan rates have seen investors rally to shares for returns through the COVID-19 pandemic, with the technology sector benefiting the most.
“Big names in time-tested technology have shown their ability to withstand the storm, even in very difficult times with the virus, so investors see them as names that can survive any potential downtime and still do well when things return to normal. “Meckler added.
The Fed is expected to signal a light monetary policy for the foreseeable future in its two-day session beginning Tuesday. The recent launch of the coronavirus vaccine is also expected to improve the central bank’s outlook in 2021.
Eli Lilly (NYSE 🙂 and Co rose 2.1% after the company said it would buy Prevail Therapeutics (NASDAQ 🙂 Inc. in a business valued at $ 1.04 billion to expand its presence. in the lucrative field of gene therapy. Prevail shares increased by approximately 83.0%.
Modern (NASDAQ 🙂 Inc shares fell 3.2%, even though staff members of the US Food and Drug Administration did not raise any new concerns about COVID-19 vaccine data. A report said the vaccine will get emergency approval for use on Friday.
Advanced issues outpaced the number of decliners for a ratio of 2.51 to 1 on the NYSE and a ratio of 1.67 to 1 on the Nasdaq.
The S&P index recorded eight new highs of 52 weeks and two new lows, while the Nasdaq recorded 62 new highs and 10 new lows.