Finance News

Shares rebound from document highs as uncertainty stays about further stimulus

The Dow Jones Industrial Average and S&P 500 traded higher on Wednesday, building on recent strength that pushed key averages to record highs amid optimism about new fiscal stimulus and a coronavirus vaccine.

The 30-share Dow was up 128 points, or 0.4%. The S&P 500 rose 0.2%. The Nasdaq Composite hovered around the flatline.

Stocks that would benefit most from a successful vaccine launch on Wednesday. The cruise lines Carnival and Norwegian Cruise Line gained 1.6% and 0.7% respectively. American Airlines was up 3.2% and Delta was up 1.1%.

Treasury Secretary Steven Mnuchin tabled a $ 916 billion stimulus package to House Speaker Nancy Pelosi late Tuesday as lawmakers attempted to break a month-long stalemate over additional aid.

Mnuchin's proposal came after Senate Majority Leader Mitch McConnell said he wanted Congress to pass a coronavirus relief bill that does not provide legal immunity for businesses or state and local relief. Chuck Schumer, chairman of the Senate Minority, D-N.Y., Said McConnell's proposal to move the stimulus talks forward without state and local government assistance was not in good faith.

"Now that the White House is back in discussion, the economic talks are on," said Peter Cardillo, chief market economist at Spartan Capital Securities. He added that despite the recent back and forth between Republicans and Democrats, the prospect of a compromise is growing.

The volatile negotiations are taking place amid the worst days of the coronavirus pandemic. More than 200,000 Americans, on average, test positive for the coronavirus every day, according to a CNBC analysis of Johns Hopkins University data.

In the United States, 1 million new cases have emerged in just four days, bringing the national total to over 15 million.

However, Wall Street concerns over the recent spike in Covid-19 cases have eased somewhat after the UK started rolling out the Pfizer vaccine on Tuesday.

The news drove the Dow, S&P 500 and Nasdaq to peak in the previous session. The Dow gained around 100 points on Tuesday, while the S&P 500 and Nasdaq rose 0.3% and 0.5%, respectively.

"Covid is raging and there is still no stimulus package? Regardless, with vaccinations already in place, it may be impossible to keep this stock market from rising during the holidays," Jim Paulsen, chief investment strategist at Leuthold Group, told CNBC .

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