Wall Street adds more gains to last week’s rally; tech leads

Wall Street adds more gains to last week’s rally; tech leads

Stocks are pushing higher on Wall Street in afternoon trading Monday and tacking more gains onto last week’s market rally, its best in three months.

The S&P 500 was 2% higher, following up on strengthening in stock markets around the world. Big Tech stocks, including Apple and Microsoft, powered much of the rally. Their businesses have proven to be practically impervious to the pandemic, unlike companies that would benefit from a strengthening economy.

The gains come as Wall Street appears to be shrugging off the latest sign that Democrats and Republicans are no closer to reaching a deal on more aid for the economy, which remains hobbled by the pandemic. Over the weekend, Democratic House Speaker Nancy Pelosi criticized the latest offer from the Trump administration on a stimulus package as “one step forward, two steps back,” while the president’s fellow Republicans called it too expensive.

Investors may be betting that Congress will deliver a more generous aid bill after the election, should Democrats regain the majority in Congress, as some polls suggest.

“The market is expressing some comfort with Democrats taking the White House and the Senate, if it means that there will be more stimulus,” said Willie Delwiche, investment strategist at Baird. “But the reality is it’s several months away before anything could get passed. It does raise a question in my mind whether or not some of this is too much, too soon in terms of the market anticipating stimulus at this point.”

The Dow Jones Industrial Average was up 300 points, or 1.1%, at 28,886, as of 2:52 p.m. Eastern time, while the Nasdaq composite, which is heavily weighted with technology stocks, was 3.2% higher.

Apple climbed 6.7% and alone accounted for nearly a quarter of the S&P 500’s rise. Amazon gained 6%. Both companies have events coming up this week, with Apple expected to unveil its latest batch of iPhones on Tuesday and Amazon holding its Prime Day on Tuesday and Wednesday.

Microsoft also headed higher, rising 3.6%, Facebook was up 5.7% and Google’s parent company gained 5%.

Energy stocks were lagging the most, pulled lower by a sharp drop in U.S. crude oil prices. Oil and gas producer Apache Corp. was among the biggest decliners in the S&P 500, down 4.8%.

The Russell 2000 index of small-cap stocks, which tends to move more with expectations for the economy’s strength than Big Tech companies, was up a more modest 0.5%.

Mondays gains add to last week’s 3.8% rally for the S&P 500, which came amid a dizzying 360-degree spin on expectations for Congress and the White House to be able to deliver more aid for the economy.

President Donald Trump said early in the week he’d put a halt to negotiations on stimulus, even though economists and the chair of the Federal Reserve say the economic recovery likely needs it. He then backed a set of more limited programs before admonishing negotiators at the end of the week to “Go Big!” His administration unveiled its latest, increased proposal to House Democrats, valued at about $1.8 trillion, but it was rejected by Democrats over the weekend.

Investors have been agitating for more stimulus since the expiration of extra unemployment benefits for laid-off workers and other support for the economy approved by Congress earlier this year. Even if Washington can’t deliver the aid soon, some investors have been building up their expectations that it may arrive in 2021.

Rising poll numbers for Democrats are raising the odds for a sweep of the White House, Senate and House of Representatives. If that were to happen, investors say it would also increase the likelihood for a big stimulus package after the election. That could offset the drag on corporate profits that investors expect a Democratic-controlled Washington would create through higher taxes and tighter regulations.

This week also marks the start of earnings reporting season for big U.S. companies, where CEOs will tell investors how they fared from July through September. Analysts are forecasting another quarter of weaker profits, with S&P 500 earnings expected to be down 20.5% from a year earlier, according to FactSet.

But that’s not as bad as analysts were forecasting a few months ago, and it’s not as bad as the 31.6% drop that S&P 500 companies reported for the spring quarter. As widespread lockdowns eased across the country, companies have been able to feel a bit of increasing momentum.

This week will feature earnings reports from many of the nation’s biggest banks, and how they fare “could give a clearer picture into just how far we’ve come in terms of economic recovery,” said Chris Larkin, managing director at E-Trade Financial.

In European stock markets, France’s CAC 40 rose 0.7%, and Germany’s DAX returned 0.7%. The FTSE 100 in London slipped 0.3%.

Chinese shares led advances in Asia. Hong Kong’s Hang Seng jumped 2.2%, while stocks in Shanghai rose 2.6%.

Japan’s Nikkei 225 slipped 0.3%, and South Korea’s Kospi added 0.5%.

Trading in the Treasury market is closed for a holiday.

___

AP Business Writer Yuri Kageyama contributed.

Stan Choe And Alex Veiga, The Associated Press

Business

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Don and Gloria Moore, of Red Deer, are set to celebrate their 70th anniversary later this month. (Contributed photo)
Red Deer couple to celebrate 70th anniversary

Red Deer couple Don and Gloria Moore are set to celebrate their… Continue reading

Chris Scott, owner of The Whistle Stop Cafe, was put in handcuffs after an anti-restriction protest Saturday in the parking lot of the business. (Screenshot via The Whistle Stop Facebook page)
UPDATE: Central Alberta cafe owner arrested after anti-restriction protest

The owner of a central Alberta cafe, which was the site of… Continue reading

Alberta has 1,910 active cases of COVID-19 as of Wednesday. Red Deer is reporting five active cases, with 108 recovered. (File photo)
Red Deer now has 911 active COVID-19 cases

Central zone has 2,917 active cases

Red Deer Regional Hospital Centre's expansion project is still a high priority, says Alberta Infrastructure Minister Prasad Panda. (File photo by Advocate staff)
Red Deer hospital ICU admissions stable, but rising, says surgeon

The Red Deer Regional Hospital Centre’s intensive care unit is in better… Continue reading

FILE - A firefighter wears a mask as he drives his truck. THE CANADIAN PRESS/Jonathan Hayward, File
VIDEO: Flames rip through Edmonton-area seniors complex, but no fatalities

ST. ALBERT, Alta. — Fire has destroyed part of a retirement complex… Continue reading

Nuns of Mother Teresa’s Missionaries of Charity, carry some of her relics during a vigil of prayer in preparation for the canonization of Mother Teresa in the St. John in Latheran Basilica at the Vatican, Friday, Sept. 2, 2016. In which city did she do much of her charitable work? (AP Photo/Gregorio Borgia)
QUIZ: How much do you know about these motherhood issues?

In honour of Mother’s Day, take this 10-question quiz

Dr. Robert Strang, Nova Scotia's chief medical officer of health, is setting off a social media reaction with his calls to stop non essential shopping, such as "buying sandals at Costco", with this photo of his worn sandals, which he published to social media on Saturday, May 8, 2021. THE CANADIAN PRESS/HO-Dr. Robert Strang, *MANDATORY CREDIT*
Nova Scotia’s top doctor sparks meme with caution on non-essential shopping

HALIFAX — Nova Scotia’s top doctor has launched a social media meme… Continue reading

Chief Public Health Officer Theresa Tam speaks during a technical briefing on the COVID pandemic in Canada, in Ottawa on Friday, Jan. 15, 2021. Canada's chief public health officer is reminding Canadians even those who are fully vaccinated are not immune from transmitting the COVID-19. THE CANADIAN PRESS/Adrian Wyld
Tam warns that full vaccination does not equal full protection from COVID-19

Canada’s chief public health officer reminded Canadians on Saturday that even those… Continue reading

Carolina Hurricanes coach Rod Brind'Amour conducts drills during NHL hockey training camp in Morrisville, N.C., Wednesday, Jan. 6, 2021. (AP Photo/Gerry Broome)
NHL relaxing virus protocols for vaccinated playoff teams

The NHL is relaxing virus protocols for teams that reach a threshold… Continue reading

Canada skip Kerri Einarson directs her teammates against Sweden in a qualification game at the Women's World Curling Championship in Calgary, Alta., Saturday, May 8, 2021. THE CANADIAN PRESS/Jeff McIntosh
Canada’s Einarson eliminated at curling worlds after 8-3 loss to Sweden’s Hasselborg

CALGARY — Canada’s Kerri Einarson was eliminated at the world women’s curling… Continue reading

Jennifer Coffman, owner of Truffle Pigs in Field, B.C., poses beside her business sign on Thursday, May 6, 2021, in this handout photo. Her restaurant and lodge have been hit hard by a closure of a section of the Trans-Canada Highway and by the British Columbia government discouraging Alberta residents from visiting during the pandemic. THE CANADIAN PRESS/HO-Jennifer Coffman, *MANDATORY CREDIT*
‘Why we survive’: B.C. boundary towns struggle without Albertans during pandemic

Jennifer Coffman didn’t expect to get hit with a double whammy at… Continue reading

A courtroom at the Edmonton Law Courts building, in Edmonton on Friday, June 28, 2019. The effect of the coronavirus pandemic will have a lasting impact on the Canadian justice system warn a number of legal experts. The Alberta Court of Queen's Bench announced Sunday it would adjourn all scheduled trials across the province for at least 10-weeks limiting hearings to only emergency or urgent matters. THE CANADIAN PRESS/Jason Franson
Edmonton mother found guilty of manslaughter in death of five-year-old girl

EDMONTON — An Edmonton woman was found guilty Friday of manslaughter in… Continue reading

A Statistics Canada 2016 Census mailer sits on the key board of a laptop after arriving in the mail at a residence in Ottawa, May 2, 2016. THE CANADIAN PRESS/Sean Kilpatrick
Statistics Canada sees more demand to fill out census online during pandemic

OTTAWA — Statistics Canada says the response to the census is higher… Continue reading

Most Read