Big Tech Gains Send Wall St. Higher

Markets shrug off lack of stimulus progress
By Newser Editors and Wire Services
Posted Oct 12, 2020 3:59 PM CDT
Big Tech Gains Send Wall St. Higher
A statue of President George Washington on the steps of Federal Hall faces the facade of the New York Stock Exchange.   (AP Photo/Richard Drew, File)

Solid gains for technology stocks pushed Wall Street higher Monday, tacking more gains onto last week’s rally. Big Tech companies including Apple and Amazon, whose businesses have been thriving despite the pandemic, led the way higher. Companies that depend more on broad growth in the economy didn’t rise as much. Investors are still waiting to see whether Washington can get past its partisan divide to deliver more support for the economy, the AP reports. This week also marks the start of earnings reporting season, when CEOs will detail how their companies fared from July through September. The S&P 500 rose 57.09 points, or 1.6% to 3,534.22. The Dow Jones Industrial Average climbed 250.62 points, or 0.9%, to 28,837.52. The Nasdaq composite gained 296.32 points, or 2.6%, to 11,876.26.

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. 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," says 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."

(More stock market stories.)

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