Tech stocks extend Wall St rally amid expectations of stimulus

Wall Street rises in openness driven by tech and stimulus expectations

Illustrative file photo of the facade of the New York Stock Exchange

Illustrative file photo of the facade of the New York Stock Exchange

By Medha Singh

Oct 12 (Reuters) – The major indices on Wall Street rose for a fourth straight session on Monday, helped by an advance in the technology sector and optimism that Washington would reach a deal on more fiscal support as investors prepared to the start of the corporate earnings season.

* Apple Inc shares were the strongest supporter of the three major indices with a rise of 3.6% ahead of a company event on Tuesday, which most analysts expect will be used to reveal the new iPhone with 5G capabilities.

* Meanwhile, Inc was up 3.5% ahead of its Prime Day shopping event on October 13-14.

* At 1526 GMT, the Dow Jones Industrial Average was up 0.96% to 28,860 points, the S&P 500 was up 1.33% at 3,523.56, and the Nasdaq Composite was up 2.06% to 11,818 units.

* On Saturday, the Donald Trump administration asked Congress to approve a simplified coronavirus relief bill amid stalled negotiations for a broader package.

* “The growing advantage of Democrats decreases the likelihood of a disputed election result and increases the odds of a larger stimulus package and infrastructure spending in 2021,” said Marc Chaikin, founder of the research firm of Chaikin Analytics Investments in Philadelphia.

* A recent Reuters / Ipsos poll showed Americans steadily losing confidence in President Donald Trump’s handling of the COVID-19 pandemic, with his net approval hitting a record low.

* Higher expectations for a Democratic victory in next month’s presidential election have also helped top Wall Street indices rise to month-long highs, as a victory by candidate Joe Biden could ease the trade war with China and the consequent tariff pressures on the US economy.

* In addition to the political issue, the results of the big US banks will be in the spotlight this week. JPMorgan & Co and Citigroup will report their earnings on Tuesday. Bank shares were up 0.7%.

(Report by Medha Singh and Shivani Kumaresan in Bengaluru, Edited in Spanish by Manuel Farías)


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