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  • The Dow Jones Industrial Average DJI rose 59.87 points, or 0.2%.
  • The S&P 500 SPX gained 6.55 points, or 0.18%.
  • The Nasdaq Composite IXIC dropped 5.74 points, or 0.05%.

Wall Street was rallying during parts of the day on the prospects of fiscal stimulus, an easier Fed and a faster economic recovery and distribution of the coronavirus vaccines.

The S&P 500 SPX made a new record high close on Wednesday although the Nasdaq Composite Index dipped, potentially struggling as investors seek out growth stocks again.

The only real downbeat news came in a bleak private jobs report and Beige Book.

However, investors were far more focussed don the Republicans and Democrats in Congress.

While they remained unable to reach agreement on fresh relief for a pandemic-hit US economy, U.S. House Majority Leader Steny Hoyer expressed hope that a deal could be reached “in the next few days”.

Moreover,  Treasury Secretary Steven Mnuchin said President Donald Trump supported a proposal put forth by Republican Majority Leader Mitch McConnell.

However, it is still unclear that the relief measure would pass the Democratic-controlled House of Representatives.

Meanwhile, House Speaker Pelosi and US Senator Chuck Schumer of New York Schumer have backed bipartisan plans as a base for stimulus talks which markets cheered. 

Investors feel that a package is on the cards at this stage and stocks liked it. 

  • Pelosi, Schumer joint statement on need for bipartisan coronavirus relief

Subsequently, the Dow Jones Industrial Average added 59.87 points, or 0.2%, to 29,883.79; the S&P 500 put on 6.55 points, or 0.18%, to 3,669; and the Nasdaq Composite fell 5.74 points, or 0.05%, to 12,349.37.  

As for vaccine news, in the latest upbeat development, Pfizer Inc PFE and BioNTech’s BNTX COVID-19 vaccine got the green light for use in Britain.

The UK will be the first Western country to approve a shot for COVID-19.

As for the stock price reactions, Pfizer rallied 3.5% and BioNTech surged about 6%.

US data in focus

US jobs are the theme this week, with the Nonfarm Payrolls on Friday.

On Wednesday, however, as a possible prelude to the data, the US November ADP private payroll report was much weaker than expected.

Data was showing that jobs rose 307k, down from 404k last month and compared with expectations of 440k.

However, any potential sign of a worsening labour market in Friday’s broader jobs report should put more pressure on Congress to agree on a stimulus package.

Additionally, the Federal Reserve meeting mid-month will also be expected to be supportive of risk-sentiment on a more dovish outcome.