Wall Streets’ main indices closed higher as investors bet on high profile tech stocks before their earnings reports later in the week and as they weighed up progress in US government stimulus efforts against rising COVID cases.
Facebook (NASDAQ:FB), Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL) and Alphabet (NASDAQ:GOOGL) are all due to report this week and were among the top gainers in the US session, resulting in the NASDAQ closing +1.7% higher, outperforming both the Dow and the S&P 500.
US senators also raced to complete details of a $1 trillion coronavirus rescue package before the enhanced unemployment benefits expire on Friday. The proposal needs to be negotiated with Democrats, an almost guaranteed showdown. There are doubts that the rescue package would provide sufficient support to the economy.
Second wave fears linger
Coronavirus concerns remain with outbreaks and flare-ups across the globe making the prospect of a second wave very real. China, Hong Kong, France, Germany and Spain are all seeing a spike in COVID cases.
Spain is under the spotlight as the UK imposes a revised 10-day quarantine rule for those returning from the Iberian Peninsula. Spain is highly dependent on its tourism sector and these measures in peak season will negatively impact the fragile economic recovery there.
The economic calendar is light today, with Spanish unemployment in focus. Unemployment came in lower than expected at 15.33% instead of 16.2%, up from 14.4%.
Looking ahead US consumer confidence is also in focus with expectations for a decline in confidence after a rebound in June.