- US stocks climbed on Monday as investors digested President Donald Trump’s weekend stimulus orders against China tensions and new coronavirus cases.
- On Saturday, President Trump signed four executive actions to extend coronavirus aid after Congress failed to come to an agreement last week.
- US-China tensions escalated when China imposed fresh sanctions on several members of Congress including senators Marco Rubio and Ted Cruz over Hong Kong.
- US coronavirus cases hit 5 million over the weekend, according to data from Johns Hopkins University.
- Oil rose as Saudi Aramco said demand will continue to improve.
- Read more on Business Insider.
US stocks rose on Monday as investors weighed President Trump’s virus stimulus orders against escalating China tensions and increasing coronavirus cases.
Investors are digesting the potential effect of four executive orders signed by President Donald Trump on Saturday to extend fiscal assistance amid the coronavirus pandemic recession.
The orders include a temporary payroll tax holiday, stop some evictions, anddefer=”defer”student-loan payments. It would also extend further unemployment benefits, but at $US300 per week as opposed to the $US600 per week that expired in July.
Here’s where US indexes stood at the 4 p.m. ET market close on Monday:
- S&P 500:3,360.47, up 0.3%
- Dow Jones industrial average: 27,791.44, up 1.3% (358 points)
- Nasdaq composite:10,968.36, down 0.4%
Trump’s actions come after Congress failed to make a deal on the next stimulus package last week. Democrats and Republicans have been battling over extending the $US600 extra unemployment benefit. It is unclear if Trump’s actions are legal.
“While the legality and details of the orders will undoubtedly be challenged, it may temporarily ease any market fears, while angering a sidelined Congress at the same time,” said Craig Erlam, senior market analyst at OANDA, in a Monday note.
Treasury Secretary Steven Mnuchin said in a Monday interview with CNBC that a deal could happen this week if Democrats and Republicans can compromise.
Shares of Boeing and Caterpillar gained more than 5%. Airline stocks also jumped after the Transportation Security Administration reported its highest number of travellers passing through checkpoints since the coronavirus pandemic hit the US in March.
Sports-betting stocks also fell amid growing concerns that college football will be cancelled entirely in the fall. Eastman Kodak slumped 29% after its $US765 million US government loan was put on pause.
Elsewhere, geopolitical tensions rose after China imposed fresh sanctions on 11 Americans including Republican Sens. Marco Rubio and Ted Cruz over Hong Kong. It’s the latest escalation of US-China tensions in recent months.
New COVID-19 cases continued to climb. US coronavirus cases topped 5 million over the weekend, according to data from Johns Hopkins University. The US now makes up roughly a quarter of all coronavirus cases globally. More than 162,900 Americans have died from the virus.
Shares of Twitter rose on a Wall Street Journal report that the company has held early talks with popular social-media platform TikTok.
Foot Locker surged after the company said it will report a surprise profit in its second quarter earnings release due August 21. The company’s same-store sales jumped in the quarter as stores reopened, it said.
Oil rose as Saudi Aramco said demand will continue to improve for the commodity. West Texas Intermediate crude gained as much as 2.7%, to $US42.33 per barrel. Brent crude, the international benchmark, rose 1.9%, to $US45.26 per barrel, at intraday highs.
‘The most extreme valuations in history’: A notorious market bear says investors should brace for record-low negative returns over the next 12 years – and warns that today’s exuberance implies a 66% plunge
Business Insider Emails & Alerts
Site highlights each day to your inbox.