The S&P 500 closed in on its February peak on Tuesday, returning to levels last seen before the reaction to COVID-19 that caused one of Wall Street’s most dramatic crashes in history, on hopes for more U.S. stimulus.
U.S. Treasury Secretary Steven Mnuchin said Monday that he believes Democrats are “willing to compromise” on a fourth COVID-19 stimulus package, saying that if there is a “fair deal,” the Trump administration will “do it this week.”
Ultra-low interest rates, trillions of dollars in stimulus and, more recently, a better-than-feared second-quarter earnings season have allowed all three of Wall Street’s main indexes to recover.
The tech-heavy Nasdaq has led the charge, boosted by “stay-at-home winners” Amazon.com Inc, Netflix Inc and Apple Inc. The blue-chip Dow surged 1.2%, coming within 5% of its February peak.
Value stocks outperformed tech-focused growth stocks on Tuesday, reflecting market’s confidence in improving economic outlook… Investors are now hoping Republicans and Democrats will resolve their differences and agree on another relief program to support about 30 million unemployed Americans…
The S&P 500 was set to rise for the eighth straight session, its longest streak of gains since April 2019.
MacDailyNews Take: Rebound! Hopefully, the next U.S. stimulus package will now happen soon and be targeted to help those who are really hurting from extended COVID-19 shutdowns.