The main headlines of Fox Business Flash are here. Check out what is clicking on FoxBusiness.com.
U.S. stock futures on Tuesday are adding to Monday’s record gains on Wall Street as investors gained confidence with the launch of coronavirus vaccines that they hope to pave the way for a return to normal activity. in the coming months and boosted after President Donald Trump signed a $ 900 billion aid package.
| Ticker | Safety | Last | change | Change % |
|---|---|---|---|---|
| I: DJI | DOW JONES AVERAGE | 30403.97 | +204.10 | + 0.68% |
| SP500 | S&P 500 | 3735.36 | +32.30 | + 0.87% |
| I: COMP | NASDAQ COMPOSITE INDEX | 12899.423155 | +94.69 | + 0.74% |
Trade is slowing as the tumultuous 2020 draws to a close. But after plummeting in March while the pandemic set in, stock prices more than rebounded, helped by massive injections of central bank money and ultra-low interest rates, which make stocks potentially more profitable than other investments.
On Monday, the S&P 500 rose 0.9% to 3,735.36, driven by gains in technology, communication services and consumer discretionary stocks. The companies hardest hit by the pandemic, including restaurants, airlines and cruise operators, were the ones that won the most.
STOCKS JUMP FOR RECORDS LIKE TRUMP SINA OFF IN CORONAVIRUS AID
The big recovery came when investors welcomed President Donald Trump’s decision to sign a $ 900 billion coronavirus financial aid package, despite his complaints that $ 600 payments for most individuals were too low. The package also includes $ 1.4 trillion to finance government agencies, preventing a federal government shutdown that would have otherwise started on Tuesday.
Wall Street broke new records on Monday after Trump chose not to veto the bill, helping to stem uncertainty as governments impose new measures to combat the travel and business pandemic that weighs on global economic activity.
U.S. stock futures on Tuesday are adding to Monday’s record gains on Wall Street as investors have gained confidence with the launch of coronavirus vaccines that they hope will pave the way for a return to normal activity in the United States. coming months and drive a
The Dow Jones Industrial Average gained 204.10 points, or 0.7%, to a record 30,403.97. The Nasdaq compound rose 94.69 points, or 0.7%, to 12,899.42, also a record. The Russell 2000 index of smaller companies fell 7.70 points, or 0.4%, to 1,996.25.
Wall Street had hoped since last week that Trump would step back from his threat to veto economic legislation, paving the way for more financial support for aggrieved people and businesses.
The United States economy continues to deteriorate with outbreaks, infections, and widespread coronavirus hospitalizations, so the promise of more relief for millions of Americans helps reduce uncertainty amid re-imposing travel and business restrictions in response to a new variant of the coronavirus that is believed to be more contagious.
DISCOVER FOX BUSINESS ON THE MOVE BY CLICKING HERE
“In general, it’s a kind of broad-based optimism, so far as good as the vaccine launch and the stimulus bill to fill the gap,” said Ross Mayfield, investment strategist at Baird, “It’s really just a continuation of the broader force we’ve seen in the past two months. “
Inventories have also increased seasonally, said Mayfield. The market tends to rise in the last trading sessions in December and in the first two trading sessions in January, a phenomenon known as “Santa Claus high”. Since 1950, the S&P 500 index has risen by an average of 1.3% during those seven days.
Shares rose on Tuesday in Asia, with Japan’s Nikkei 225 index hitting a 30-year high after President Donald Trump signed a $ 900 billion economic aid package.
In Tokyo, the Nikkei 225 jumped 2.7% to 27,568.15, the first time it has traded above 27,000 since August 1990, according to FactSet. The market reached its historic peak of 38,915.87 on December 29, 1989.
The benchmark was driven by strong gains in heavyweights such as Mitsubishi Heavy Industries, which rose 4.6%, clothing maker Fast Retailing, also up 4.6%, and technology and energy company SoftBank, which gained 4.2%.
Other Asian stocks were also bigger.
The Hong Kong Hang Seng index rose 0.9% to 26,557.18. In South Korea, the Kospi rose 0.1% to 2,814.16. Australia’s S & P / ASX 200 rose 0.5% to 6,700.30.
The Shanghai Composite index fell 0.3% to 3,386.57. Shares fell in Taiwan and Indonesia, but rose in Malaysia and Singapore.
CLICK HERE TO READ MORE AT FOX BUSINESS
Meanwhile, Treasury yields were mixed. The 10-year Treasury yield, which could affect interest rates on mortgages and other consumer loans, rose from 0.92% to 0.94% on Monday night.
Trading on Wall Street is expected to moderate this week as most fund managers and investors closed their books for the year. It will be another shortened week for holidays, with New Year’s Day on Friday.
In other trades, the US benchmark crude gained 31 cents to $ 47.93 a barrel in e-commerce on the New York Mercantile Exchange. He lost 61 cents to $ 47.62 a barrel on Monday. Brent crude, the international standard, rose 29 cents to $ 51.19 a barrel.
The dollar was trading at 103.69 Japanese yen, compared to 103.81 yen on Monday night. The euro rose to $ 1.2236 from $ 1.2214.
___
AP business writer Alex Veiga contributed.