© Reuters. The American flag is seen on a building on Wall St. in the financial district in New York City
By Ambar Warrick and Shreyashi Sanyal
(Reuters) – U.S. stock indexes rose on Tuesday as progress toward a massive government spending bill and COVID-19 aid measures increased, while investors expected new economic indications from the Federal Reserve’s final year meeting.
Apple Inc. (NASDAQ 🙂 was the main accelerator of Dow and Nasdaq, growing 4% to a more than three-month high after a report said it plans to increase iPhone production by 30% in the first half of 2021.
Talks in Congress began late Monday to agree on a bill to avoid a government shutdown, with Democratic and Republican leaders appearing more optimistic about including a new round of coronary aid, the first new aid measure since April.
Markets have simultaneously moved with news of an emergency bill that is expected to further offset the economic impact of the virus outbreak and keep liquidity high.
But concerns about the timing of the bill, as well as a rise in the U.S. death toll from a coronavirus, led to a four-day defeat on Monday, despite optimism about the launch of a nationwide vaccination program.
“There’s likely some amount of stimulus to pass, but investors are really hoping for a stronger response to the current situation,” said Rick Meckler, a partner at Cherry Lane Investments in New Jersey.
At 9:54 am ET, the 133.99 points were higher, or 0.45%, at 29.995.54, the S&P 500 was up 26.03 points, or 0.71%, 3.673.52. The rise was 105.53 points, or 0.85%, at 12.545.57.
Technology supplies were the best performance of S&P 500 sector in early trading.
Increased liquidity and ultra-low lending rates have seen investors rally to provide a yield through the COVID-19 pandemic, with the i.e. sector-wide sector most profitable.
“The time-tested big tech names have shown their ability to withstand the storm, even during very difficult times with the virus, so investors see them as names that can survive all sorts of possible stops and still feel good when things are normal,” Meckler added.
The Fed expects an easy monetary policy for the foreseeable future at its two-day meeting starting Tuesday. The recent launch of a coronavirus vaccine will also improve the central bank’s outlook in 2021.
Eli Lilly (NYSE 🙂 and Co grew 2.1% after the company said it would buy Prevail Therapeutics (NASDAQ 🙂 Inc. in a deal potentially valued at $ 1.04 billion, to expand its presence in the for-profit field. gene therapy. Prevail shares grew 83.0%.
Modern (NASDAQ 🙂 Inc’s shares declined 3.2%, even as members of the U.S. Food and Drug Administration did not raise new data concerns about the drug’s COVID-19 vaccine. A report said the vaccine will receive approval for emergency use on Friday.
Progress issues outperformed declines for a 2.51-to-1 ratio on the NYSE and a 1.67-to-1 ratio on the Nasdaq.
The S&P index recorded eight new 52-week highs and two new lows, while the Nasdaq recorded 62 new highs and 10 new lows.