- Wall Street benchmarks pleased buyers as US policymakers inch closer to the much-awaited fiscal stimulus package.
- Nasdaq benefits the most amid back-up from tech-shares, rises over 4.0% at one point before closing with 3.70% gains.
- S&P 500 grew 54.09 points or 1.42%, DJI30 rose 30.30 points or 0.10%.
- US Treasury Secretary Yellen promises to get $350 billion aid to state and local governments, stimulus chatters are the key.
US equity traders had another upbeat day on Tuesday as global market sentiment stay hopeful over the American fiscal stimulus. Also favoring the mood could be the coronavirus (COVID-19) vaccine news and the hopes of economic recovery.
All three Wall Street benchmarks closed in positive while Nasdaq gained the most as tech-gains offered extra help to the equity gauge highlighting technology shares. That said, the DJIA rose 30 points, 0.10%, to close at 31,832.74, up for the third consecutive day whereas the S&P 500 Index also followed the suit by rising 54.09 points or 1.42% to 3,875.44. It should, however, be noted that Nasdaq was the life of the party with 464.66 points of a run-up while marking 3.69% gains on the closing basis.
While tracing Nasdaq’s heavy run-up, Tesla’s 20% rally and notable upside in several weeks by Amazon and Microsoft seemed to have backed the tech-heavy US equity index.
US policymakers are currently jostling in the house over President Joe Biden’s $1.9 trillion stimulus. Meanwhile, US Treasury Secretary Janet Yellen recently said, “Treasury will work to get $350 billion in coronavirus aid to state and local governments out in the quickest way possible.” The ex-Fed Chair also mentioned, “city economies by end of 2021 will resemble 2019 much more than 2020.”
While market players were busy celebrating the expectations of the US covid relief package, US Treasury yields snapped a four-day winning streak by declining 6.6 basis points (bps) to 1.528% by the end of Tuesday’s North American session. The same offered additional help to equities that earlier feared reflation pushing global central banks to curtail the easy money policies.
Looking forward, investors will pay close attention to the headlines from the American House as policymakers are an inch closer to the relief bill. On the data side, US Consumer Price Index (CPI) for February shouldn’t be missed as well.
Read: US CPI February Preview: A perfect storm in the making?
Share
