Wall St at record levels after Trump signs fiscal aid bill

By Devik Jain and Supriya R (Reuters) -Wall Street's main indexes were trading at record levels on Monday as President Donald Trump's signing of a long-awaited $2.3 trillion pandemic aid bill bolstered bets on an economic recovery. In a sudden reversal late on Sunday, Trump backed down from his threat to block the hard-fought bill, restoring unemployment benefits to millions of Americans and averted a federal government shutdown.

Reuters December 29, 2020 00:05:42 IST
Wall St at record levels after Trump signs fiscal aid bill

Wall St at record levels after Trump signs fiscal aid bill

By Devik Jain and Supriya R

(Reuters) -Wall Street's main indexes were trading at record levels on Monday as President Donald Trump's signing of a long-awaited $2.3 trillion pandemic aid bill bolstered bets on an economic recovery.

In a sudden reversal late on Sunday, Trump backed down from his threat to block the hard-fought bill, restoring unemployment benefits to millions of Americans and averted a federal government shutdown.

"The passage of the stimulus bill is erasing some fears and investors are relieved that there is help out there," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

The S&P 1500 airlines index added 1.5% as carriers are set to receive $15 billion in addition payroll assistance under the new government aid.

Cruise operators Royal Caribbean Cruises Ltd, Carnival Corp and Norwegian Cruise Line Holdings Ltd also rose between 3% and 5%.

Ten of the 11 major S&P sectors were higher with technology, consumer services and consumer discretionary posting the biggest gains.

After a sharp recovery from a coronavirus crash in March, the S&P 500 is on track to rise more than 15% this year on the back of a loose monetary policy, high liquidity and a COVID-19 vaccine program.

However, near-term outlook for equities remain clouded on worries over a resurgence in coronavirus pandemic, mixed economic data and upcoming U.S. Senate runoffs in Georgia.

Trading volumes are expected to be thin in the final week of the year that has historically been a seasonally strong period for equities.

At 11:46 a.m. ET, the Dow Jones Industrial Average rose 237.05 points, or 0.78%, to 30,437.00 the S&P 500 gained 31.32 points, or 0.85%, to 3,734.49 and the Nasdaq Composite gained 96.52 points, or 0.76%, to 12,901.82.

Democrats in the U.S. Congress on Monday will put to vote a proposal for higher pandemic relief payments for Americans, although it appears unlikely to gain traction in the Republican-controlled Senate.

Fueling a global appetite for risk, Britain and the European Union clinched a lean post-Brexit trade deal on Thursday, while the launch of a mass COVID-19 vaccination drive in Europe over the weekend added to the upbeat mood.

Tesla Inc rose 1.3% after a report that the electric-car maker will start operations in India early next year.

Netflix Inc, Peloton Interactive Inc and Zoom Video Communications Inc, which have outperformed throughout the health crisis, slipped between 0.1% and 5%.

Lockheed Martin Corp rose 0.1% after the fighter jet maker said it delivered 123 F-35 jets in 2020, near the top end of its revised outlook.

Advancing issues outnumbered decliners by a 1.7-to-1 ratio on the NYSE and by a 1.4-to-1 ratio on the Nasdaq.

The S&P 500 posted 31 new 52-week highs and no new lows, while the Nasdaq recorded 392 new highs and 14 new lows.

(Reporting by Devik Jain and Supriya R in Bengaluru; Editing by Anil D'Silva and Maju Samuel)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.