US stocks rallied earlier in Monday trading on reports of US President Donald Trump's improved health and hopes for new economic stimulus.
The Dow Jones Industrial Average rose by 223.27 points (0.81%) by 17:01 Moscow time – up to 27906.08 points. The Nasdaq Composite rose by 143.46 points (1.3%) – up to 11218.48 points. Standard & Poor's 500 added 32.3 points (0.97%) to 16:46 Moscow time and amounted to 3380.94 points.
Tesla Inc. Shares rise in price by 3.4% on Monday. The company on Friday released data on its electric vehicle stands in the third quarter, which beat the consensus forecast by analysts, reaching another record.
MyoKardia Inc. stock price soared by 58.7%. American pharmaceutical company Bristol-Myers Squibb Co (NYSE: BMY). said it would acquire a biotech company for $ 13.1 billion. The deal will allow Bristol to gain control of the experimental heart disease drug MyoKardia, which, if approved, will enable the company to reduce its dependence on cancer therapy.
Bristol shares lost 0.2%.
As a result of trading on Friday, the US stock market declined, although it ended in positive territory for the second week in a row, amid falling-short labor market data and news that Trump and his wife tested positive for COVID-19.
On Sunday, the President's physician Sean Conley said Trump was on the mend. “Since our previous conversation with you (journalists), President Trump's health has continued to improve,” the American media quoted him as saying.
One of Trump's attending physicians, Brian Garibaldi, expressed the hope that with a favorable development of events, the patient could be discharged on Monday.
White House chief of staff Mike Meadows also said that Trump may return to the White House from the hospital on Monday evening, where he is being treated for COVID-19. “I spoke to the President this morning,” Meadows said on Fox News. “His condition has continued to improve overnight, and he is ready to return to normal work.”
He added that doctors would later decide on Trump's discharge today.
House of Representatives Speaker Nancy Pelosi said Friday that Trump's diagnosis will affect negotiations on new economic stimulus in the United States.
“This changes the dynamics in a certain way as Republicans see the reality of what we talked about from the beginning. This is a dangerous virus,” she said in an interview with MSNBC.
Trump, in turn, over the weekend urged lawmakers to take new measures to support the economy, noting that the US needs stimulus.
The outlook for the US economy now looks more challenging than it did in June, according to a quarterly survey by the National Association for Business Economics (NABE).
While 52 economists are still forecasting continued growth in US GDP, they downgraded their forecasts for the pace of recovery in the last three months of this year and in 2021.
NABE respondents on average now expect an increase of 4.9% in October-December against 6.8% projected at the beginning of summer. By the end of 2020, real GDP is expected to fall by 4.3%.
The median estimate of economic growth in 2021 has deteriorated to 3.6% from 4.8% previously expected, according to a survey published by MarketWatch.