Tech stocks extend Wall St rally amid expectations of stimulus

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Wall Street rises in openness driven by tech and stimulus expectations




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


© Reuters/BRENDAN MCDERMID
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, Amazon.com 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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