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TUESDAY, October 04, 2022
U.S. stocks rise on bets on spending-package deal

U.S. stocks rise on bets on spending-package deal

WEDNESDAY, October 21, 2020

U.S. stocks rose as lawmakers negotiated the size of a potential spending bill to bolster the economic recovery. The dollar weakened.

The S&P 500 bounced back from Monday's sell-off even as any deal brokered by House Speaker Nancy Pelosi, D-Calif., and the White House likely to face stiff opposition in the Republican-controlled Senate. The index had gotten a boost when Pelosi signaled a compromise remained possible and after Federal Reserve Bank of Chicago President Charles Evans said he's "somewhat optimistic" about a 2021 economic recovery.

Tech shares mostly shook off the U.S. Justice Department's decision to sue Google for allegedly abusing its power. Netflix Inc. reports after the market closes. Treasurys slumped, along with government bonds in Europe. Oil climbed toward $41 a barrel.

A rally built on stimulus hopes has investors weighing Pelosi's deadline of striking a deal today against speculation that the looming election will prove too much of a hurdle to overcome. Yet with Federal Reserve policymakers urging for more fiscal support to complement unprecedented monetary aid, many in the market may be willing to let the deadline come and go.

"The behavior of markets is reflecting optimism that there's going to be big stimulus by January," said John Normand, head of cross-asset fundamental strategy at JPMorgan Chase & Co. "I don't think it's necessarily a faith that Pelosi and Mnuchin and McConnell will agree to anything substantive by Pelosi's deadline of today. It's more of a look-through dynamic."

In Europe, stocks edged lower. UBS gained after the Swiss firm's traders performed better than most of their Wall Street rivals in the third quarter.

Leaders in Europe intensified efforts to slow coronavirus contagion, reviving lockdowns in some areas after piecemeal curbs made little impact on a disease that has infected 4.9 million people regionally.

Meanwhile, global cases exceeded 40 million, with the pandemic showing no signs of slowing. In the U.S., surges in Wisconsin and other battleground states pose a challenge for President Donald Trump two weeks before he stands for reelection.

Here are some of the main market moves:


- The S&P 500 Index gained 0.8% as of 3:47 p.m. EDT.

- The Nasdaq 100 Index gained 0.4%.

- The Stoxx Europe 600 Index decreased 0.4%.

- The MSCI Asia Pacific Index was little changed.


- The Bloomberg Dollar Spot Index fell 0.4%.

- The British pound was little changed at $1.2945.

- The Japanese yen was little changed at 105.48 per dollar.


- The yield on 10-year Treasurys increased two basis points to 0.79%.

- Germany's 10-year yield increased two basis points to -0.61%.

- Britain's 10-year yield increased two basis points to 0.185%.

- Italy's 10-year yield rose one basis point to 0.73%.


- West Texas Intermediate crude rose 0.9% to $41.19 a barrel.

- Gold rose 0.5% to $1,913 an ounce.