Major U.S. equity indexes all hit intraday records at the start of Monday to begin the final, holiday-shortened week of 2020 after President Donald Trump ended a standoff with Congress over legislation that would send aid to consumers and businesses.
What are major indexes doing?
- The Dow Jones Industrial Average DJIA, +0.98% rose 202 points, or 0.7%, to 30,409. The blue-chip benchmark briefly climbed to 30,409.94, its first intraday record in 10 days.
- The S&P 500 SPX, +0.93% added 27 points, or 0.8%, to 3,730, hitting an all-time intraday high of 3,731.38.
- The Nasdaq Composite COMP, +0.61% climbed 90 points, or 0.7%, to 12,895, touching an intraday record high of 12,893.82.
Stocks put in a mixed performance in holiday-shortened trading last week, with markets closed Friday for Christmas Day after an early finish on Thursday. The Dow eked out a rise of 0.1%, while the S&P 500 SPX, +0.93% gave up 0.2%. The Nasdaq Composite rose 0.4%. Major indexes ended Thursday not far below all-time highs.
Whatâ€™s driving the market?
Trumpâ€™s decision late Sunday to sign the aid package came as a relief to investors who had been blindsided by his demands late last week that lawmakers raise checks to households to $2,000 from $600. Trump was pressured by lawmakers from both parties, who had negotiated the legislation with the administration.
The package also includes $1.4 trillion to fund government agencies through September, averting a federal government shutdown.
â€œWe can finally breathe a big sigh of relief and say that chaos over the stimulus bill is over,â€ said Hussein Sayed, chief market strategist at FXTM, in a note.
â€œA selloff has been averted and this could provide one last boost to risk assets in the last four trading days of the year,â€ he said. â€œHowever, investors shouldnâ€™t get overexcited as most of it is probably already priced in.â€
Trading is expected to remain thin this week as investors close out 2020. Markets will be shut Friday for the New Yearâ€™s Day holiday.
Bulls expect stocks to get a seasonal lift from a â€œSanta Claus rally,â€ referring to a phenomenon that runs the last week of December and the first two trading days of January.
Which stocks are in focus?
- Alibaba Group Holding Ltd. 9988, -7.98% boosted its stock repurchase program late Sunday from $6 billion to $10 billion, but shares fell 1.3% amid an antitrust investigation by Chinese regulators. The companyâ€™s U.S.-listed shares BABA, +0.24% slumped 13% on Thursday in reaction to the antitrust scrutiny.
- Shares of Myovant SciencesÂ MYOV, +23.91% soared over 28% Monday, after its parent Sumitovant Biopharma said Myovant will work with Pfizer Inc. PFE, -0.68% Â to jointly develop a treatment for menâ€™s and womenâ€™s cancer in a deal worth up to $4.2 billion.
- Novavax Inc. NVAX, -4.38% said Monday it is starting a late-stage trial of its COVID-19 vaccine candidate with plans to enroll up to 30,000 volunteers at about 115 sites in the U.S. and Mexico.
How are other markets are faring?
- The 10-year Treasury note yield TMUBMUSD10Y, 0.953% was up 1.8 basis points to 0.948% as haven demand eased. Bond prices move in the opposite direction of yields.
- The Stoxx Europe 600 index FXXP00, +1.19% rose 0.7%, while U.K.â€™s markets were closed for the holidays. Japanâ€™s Nikkei NIK, +0.74% closed 0.7% higher, the Shanghai Composite SHCOMP, +0.02% was flat and Hong Kongâ€™s Hang Seng index HSI, -0.27% fell 0.3%.
- The ICE U.S. Dollar Index DXY, -0.14%, a gauge of the dollarâ€™s strength against its major rivals, was down 0.2%.
- February gold futures GCG21, +0.66% was up 0.7% to 1,895.60 an ounce. U.S. benchmark crude futures CL.1, -0.02% was down 0.4% to $48.04 a barrel.