Rising hopes for economic stimulus fuel growth in US stocks

Rising hopes for economic stimulus fuel growth in US stocks

Rising hopes for economic stimulus fuel growth in US stocks

Stock America is trading in positive territory amid growing hopes for new stimulus measures.

Meanwhile, the US stock market may show a decline in the first month since March.

US Treasury Secretary Stephen Mnuchin has expressed optimism about the stimulus package to combat the fallout from the coronavirus pandemic. “I will say that we are going to make another major attempt to do this, and I think we hope we can do something,” said Mnuchin, quoted by CNBC.

The day before, the first round of debates between US President Donald Trump and his rival in the upcoming presidential election, Joe Biden, took place. During the debate, Trump and Biden did not hesitate in expressions against each other, often getting personal. Polls of a number of TV channels following the debates indicate that the sympathies of the majority of viewers were on Biden's side, but Trump also managed not to lose his supporters.

According to a poll by CBS News, 48% of viewers of the debate gave the victory to Biden, 41% to Trump, and the remaining 10% believed that the debate ended in a draw. However, at the same time, the channel emphasizes that the majority of voters who were going to watch the debates stated that they had already made a choice for which of the candidates they would like to vote for. Therefore, the channel specifies, such poll results may reflect, rather, the established sympathies of voters, and not their opinion directly about the debate between the two US presidential candidates.

CNN cites more radical poll results, according to which 60% of viewers believed that Biden had the advantage in the debate, and about 30% supported Trump.

MarketWatch notes that the impact of the debate on global markets has been mixed. The atmosphere was, as expected, hostile, but voters still have not decided which candidate would better cope with the crises that gripped the country.

The U.S. economy collapsed 31.4% in the second quarter of 2020 at an annualized rate, final data from the U.S. Department of Commerce show. The estimate of the decline in the US economy was slightly improved from the previously announced 31.7%. However, this is the record rate of decline in US GDP. Experts surveyed by Trading Economics did not expect a revision of the estimate from 31.7%. For comparison: in the first quarter of this year, the US GDP fell by 5%.

The number of jobs in the private sector of the US economy in September increased at the fastest pace in three months – by 749 thousand, according to data from Automatic Data Processing Inc (NASDAQ: ADP). Economists surveyed by Econoday predicted an increase of 650 thousand Traders await the US Department of Labor data on unemployment in September, which will be published on Friday.

The Dow Jones Industrial Average rose by 362.08 points (1.32%) by 17:07 Moscow time – up to 27814.74 points.

Standard & Poor's 500 gained 32.23 points (0.97%) and amounted to 3367.70 points.

The Nasdaq Composite rose by 97.61 points (0.88%) to 11182.85 points.

Walt Disney Co (NYSE: DIS) shares. rise in price by 0.08%. The world's largest entertainment and media company has announced plans to lay off 28,000 employees at its U.S. theme parks amid the coronavirus crisis.

Dow Inc. shares are up 2.7%. The American chemical company in the third quarter is expected to fix restructuring costs in the amount of $ 500 million to $ 600 million as part of a cost-cutting program amid the coronavirus pandemic.

ConocoPhillips (NYSE: COP) is gaining 2.3%. The American oil company said it plans to resume share buybacks in the fourth quarter, hoping to buy back the shares for a total of $ 1 billion.

NextEra Energy Inc (NYSE: NEE) shares. become cheaper by 2.7%. The American energy company applied for a purchase to rival Duke Energy Corp (NYSE: DUK), but was refused, writes The Wall Street Journal, citing informed sources. Duke Energy shares are up 8.3%.

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