Stocks Snap 3-Day Losing Streak; Pound Strengthens: Markets Wrap
(Bloomberg) -- U.S. stocks rose for the first time in four days even as uncertainly surrounded President Donald Trump’s demand for changes to pandemic relief legislation. The pound gained as an outline of the post-Brexit trade deal was reached.
The benchmark S&P 500 managed to finish marginally higher despite a late session slide amid a flurry of headlines on the status of the aid package. The Nasdaq Composite and Russell 2000 indexes set intraday record highs. Trump is demanding that lawmakers increase the stimulus checks due to go out to most Americans to $2,000 from $600 in the same week that Congress passed the $900 billion bipartisan package.
“By and large the market has continually seemed to focus on the more positive bull cases around each macro event,” said Chris Larkin, managing director of E*Trade Financial’s trading and investing product. “We’re seeing the market choosing to see the cup half full, as it shrugs off the possibility of the stimulus bill failing, and instead viewing it as a catalyst for larger stimulus cash in the pockets of consumers.”
Read more: Wall Street Shrugs Off Worry About Trump’s Stimulus Critiques
The dollar stayed lower after initial jobless claims came in better than expected. Personal income for November fell by 1.1%. Treasury yields rose.
European stocks rose as trade and transport links between the U.K. and its neighbors reopened and Brexit negotiators put the finishing touches to an accord, said officials, who spoke on condition of anonymity. Travel firms and automakers led gains, with Daimler AG rising on a report the German carmaker is considering an initial public offering of its truck unit.
Investors were are looking past the president’s comments to the promise of pandemic relief that will come sooner or later. House Speaker Nancy Pelosi seized on Trump’s call for larger individual checks and said the House would try to pass this additional measure during a pro forma session on Thursday.
“He’s historically, as I believe, negotiating as he always does,” said Todd Morgan, Chairman and founding member of Bel Air Investment Advisers. “You have to look beyond the next few weeks with this president because I think good things are going to come straight ahead.”
Elsewhere, crude oil reversed an earlier decline. Gold snapped a three-day slide.
Here are some key events coming up:
- U.S. bond and stock trading and markets in other parts of the world will shut early on Thursday for the Christmas holidays. Most global markets are shut Friday.
Here are the main moves in markets:
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