Wall Street major stock indices traded higher on Wednesday as hopes of a long-awaited new round of federal virus aid eclipsed concerns over a chaotic presidential debate between US President Donald Trump and his Democratic opponent Joe Biden.
The Dow Jones Industrial Average rose 1.58 percent to 27,886.94 by noon on Wall Street.
The S&P 500 – a measure of health from U.S. retirement and college savings reports – gained 1.3 percent, while the tech-heavy Nasdaq Composite Index was 1.49 percent on the positive side.
Investors have countless concerns about clouding the outlook, including the prospect of a renewed spike in COVID-19 infections, the looming possibility of a controversial November 3rd US presidential election outcome, and the delay in Congress negotiating a new one Round of incentives to continue blunt fallout from coronavirus lockdowns.
On Wednesday, US Treasury Secretary Steven Mnuchin, who heads the White House for virus aid negotiations with Democrats in Congress, told a CNBC investor conference that he was “hopeful” that a new economic deal could be reached and that both sides should know by Thursday whether they can find common ground.
The House of Representatives, led by Nancy Pelosi, unveiled a $ 2.2 trillion tax incentive bill, which includes a second round of $ 1,200 economic reviews for Americans.
This optimistic assessment by Mnuchin helped raise inventories. A report from ADP shows that private employers in the US created 749,000 jobs in September, better than expected. The report whets the appetite for the US Bureau of Labor Statistics’ closely watched monthly employment report, which will fall on Friday.
The pain in the US job market has been particularly severe for the hospitality, hospitality, and travel industries.
At midnight, 40,000 American airline workers will be laid off from an industry decimated by the coronavirus pandemic.
In the final round of layoff news, Disney announced 28,000 job cuts Tuesday, affecting mostly part-time workers, but also executives and salaried employees.
But job losses were barely mentioned in the presidential debate on Tuesday night as Trump and Biden tossed personal attacks and insults.
Decency and decency were in short supply. What has played out more like a duel than a debate comes from the fact that the US is being hit by mounting unrest, political exhaustion, economic problems and a pandemic.
President Donald Trump and Democratic presidential candidate Joe Biden attend their first 2020 presidential campaign debate, held on the Cleveland Clinic campus of Case Western Reserve University in Cleveland, Ohio, USA [Jonathan Ernst/Reuters]President Trump refused to commit to a peaceful transfer of power and reiterated his concern that postal ballot papers would lead to election fraud.
Biden criticized Trump’s policies on almost everything from dealing with the coronavirus crisis to his plan to occupy the seat of the Supreme Court.
The first of the three presidential debates took place at a time that was volatile for Wall Street. The S&P 500 fell around 10 percent from its record highs this month.
The tech stocks that ruled Wall Street in the early days of the pandemic have turned lukewarm.
On Wednesday, shares of Alphabet, Google’s parent company, rose a little more than 1 percent in New York around noon after Reuters news agency reported, citing sources, that China was preparing to open an antitrust investigation for Google.
Some positive news from drug makers Regeneron and Moderna on coronavirus and vaccine treatment helped improve investor sentiment on Wall Street.