There was a broad rise on Wall Street on Monday. All three major indices rose well above one percent.
The rise was mainly driven by positive news about President Trump’s health and hopes for a new stimulus package.
A weak labor market report last week highlighted the need for more stimuli to continue economic progress.
Speaker of the House of Representatives Nancy Pelosi said on Sunday that talks with Finance Minister Steven Mnuchin were progressing on a support package for the coronavirus. According to CNBC, Pelosi and Mnuchin had a long conversation on Monday and will continue on Tuesday.
“As long as we hear that negotiations are continuing and that Mnuchin and Pelosi are trying to meet, the market will believe that they are making progress, and something will happen soon,” Paul Nolte told Kingsview Asset Management, according to Reuters.
– I really think these are more stimuli. This is hope for talks between Mnuchin and Pelosi, said CNBC commentator Jim Cramer.
The market rose further in the last hour when it became clear that President Trump would leave the hospital on Monday.
– I’m leaving Walter Reed Medical Center today at 6:30 p.m. Feeling very good. Do not be afraid of Covid. Do not let it dominate your life, Trump wrote on Twitter.
Otherwise, recent figures on Monday showed that the US Purchasing Managers’ Index (ISM) for the service sector was 57.8 in September, compared with 56.9 in the previous month.
An index of 56.3 was expected in advance, according to Direkt Makro.
The Dow Jones rose 1.68 percent to 28,148.18.
All of the 30 stocks in the index rose.
High on the list are Apple and American Express, which rose 3.08 and 2.32 percent.
McDonald’s rose 1.52 percent after Bank of America raised its stock price target to $ 250, the highest among Wall Street analysts, according to CNBC.
The “loser” was Coca-Cola, which rose only 0.04 percent.
Nasdaq rose 2.32 percent to 11,332.49.
Amazon rose 2.37 percent, while Netflix climbed 3.50 percent.
Starbucks rose 2.19 percent after Oppenheimer recommended buying the coffee chain, according to CNBC.
Tesla rose 2.55 percent, while Nikola fell 1.94 percent.
Facebook rose 1.81 percent.
The S&P 500 rose 1.80 percent to 3,408.62.
On the winning list, we find, among other things, the oil service giant Halliburton, which rose 5.48 percent.
The cruise lines Carnival and Norwegian Cruise Line fell 1.25 and 1.51 percent.
VIX, or the fear index, rose 1.70 percent to 28.10.
At the close of trading in the US, Brent oil is up 5.88 percent to $ 41.42 per barrel, while WTI oil is up 6.25 percent to $ 39.32 per barrel.
The gold price is up 0.50 percent to $ 1,917.20 per ounce.
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