💙 🔷 Not impressed by Big Tech in Q3? Explore these Blue Chip Bargains insteadUnlock them all

Wall Street Opens at New Highs on Hopes for Stimulus Boost; Dow up 130 Pts

Published 12/29/2020, 09:35 AM
Updated 12/29/2020, 09:40 AM
© Reuters.
US500
-
DJI
-
PFE
-
IXIC
-
AZN
-
STLA
-
SNAP
-
MRNA
-

By Geoffrey Smith 

Investing.com -- U.S. stock markets opened at new record highs for a second straight day on Tuesday, as hopes for a boost to the already-agreed fiscal stimulus package dovetailed with the urge to do some "window-dressing" of year-end balance sheets.

By 9: 35 AM ET (1435 GMT), the Dow Jones Industrial Average was up 131 points, or 0.4% at 30,535 points. The S&P 500 and the Nasdaq Composite were also both up 0.4%. All three had posted their highest ever closes already on Monday, supported by confidence that the stimulus package would put a floor under household spending - the biggest part of the U.S. economy - for the next few months.

It still isn't clear whether the Senate will vote on a motion passed by the House of Representatives on Monday increasing the direct payments to most U.S. households to $2,000 from $600, as originally foreseen. Vermont Senator Bernie Sanders has said that if the Senate doesn't make time for a vote, he will filibuster a vote on the Defense Spending bill that is needed in order to override President Trump's veto on that piece of legislation. However, Republican Senators have consistently refused to back anything higher than a $600 payment.

Among the conspicuous early movers were AstraZeneca (NASDAQ:AZN) ADRs, which rose 1.9% as various reports suggested that U.K. health regulators could approve its Covid-19 vaccine for use as early as today.

Approval from any advanced economy is likely to accelerate the rollout of a vaccine that is substantially cheaper than many of its rivals, even though there are doubts that it is as effective as the drugs developed by Pfizer (NYSE:PFE) and Moderna , which were approved earlier in the month.

Moderna (NASDAQ:MRNA) stock, which has been under pressure for most of the time since its drug was approved for emergency use by U.S. regulators, fell another 9.7% in early trading.

Elsewhere, Fiat Chrysler (NYSE:FCAU) stock ground out a new 52-week high, although it wasn't obvious that the announcement of a new $2.5 billion investment in Poland to build electric and hybrid vehicles was responsible for the move.

Snap (NYSE:SNAP) stock rose 11% after analysts at Goldman Sachs reportedly raised their 12-month price target to $70. Even after the opening move, that's some 30% above the current price.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.