© Reuters. The United States flag is visible on a building on Wall St. in New York’s financial district
By Ambar Warrick and Shreyashi Sanyal
(Reuters) – U.S. stock indices surged Tuesday as progress towards a massive government spending bill and COVID-19 relief measures kept morale high as investors awaited new economic insights from the final year meeting of the Federal Reserve.
Apple Inc (NASDAQ 🙂 was the main push to the Dow and Nasdaq, climbing 4% to a high of over three months after a report said it plans to increase iPhone production by 30% in the first half of 2021. .
Talks in Congress were underway late Monday to agree a bill to avert government shutdown, with Democratic and Republican leaders appearing more optimistic about the inclusion of a new round of coronavirus aid, the first new measure. relief from April.
Markets moved hand in hand with news of a relief bill, which should further offset the economic impact of the virus outbreak and keep liquidity high.
But concerns over the timing of the bill, as well as a spike in the number of coronavirus deaths in the United States, prompted a four-day losing streak on Monday, despite optimism about launching a wide-ranging vaccination program. national.
“A certain level of stimulus is likely to be exceeded, but investors are really hoping for a stronger response to the current situation,” said Rick Meckler, partner at Cherry Lane Investments in New Jersey.
At 9:54 am ET, it was up 133.99 points, or 0.45%, to 29,995.54, the S&P 500 was up 26.03 points, or 0.71%, to 3,673, 52. The value increased 105.53 points, or 0.85%, to 12,545.57.
Tech stocks were the best performing S&P 500 sector in early trading.
Rising liquidity and extremely low lending rates have seen investors flock to stocks for returns through the COVID-19 pandemic, with the tech sector benefiting the most.
“Time-tested big tech names have proven their ability to weather the storm, even during very tough times with the virus, so investors see them as names that can survive any potential crash and still do well when things come back. back to normal, ”Meckler added.
The Fed is expected to signal easy monetary policy for the foreseeable future at its two-day meeting starting Tuesday. The recent launch of the coronavirus vaccine is also expected to improve the central bank’s outlook for 2021.
Eli Lilly (NYSE 🙂 and Co were up 2.1% after the company said it would buy Prevail Therapeutics (NASDAQ 🙂 Inc in a potentially $ 1.04 billion deal to expand its presence in the profitable field of gene therapy. Shares in Prevail rose approximately 83.0%.
Modern (NASDAQ 🙂 Shares of Inc were down 3.2%, though staff members of the U.S. Food and Drug Administration have raised no new concerns about the drug maker’s COVID-19 vaccine data. A report says the vaccine will gain approval for emergency use on Friday.
Advancement in issuance exceeded declines by 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 made eight new 52-week highs and two new lows, while the Nasdaq made 62 new highs and 10 new lows.