Dow Rides Tech, Consumer Stocks Higher as Mnuchin Stokes Stimulus Hopes

Dow Rides Tech, Consumer Stocks Higher as Mnuchin Stokes Stimulus Hopes  | Sep 30, 2020 18:18

Dow Rides Tech, Consumer Stocks Higher as Mnuchin Stokes Stimulus Hopes

By Yasin Ebrahim – The Dow surged Wednesday, driven by technology and consumer discretionary stocks on better-than-expected economic data and rising hopes U.S. lawmakers can reach a deal on another coronavirus stimulus package.

The Dow Jones Industrial Average added 1.62%, or 444 points. The S&P 500 was up 1.15%, while the Nasdaq Composite rose 1.01%.

Signs the labor market recovery remains intact boosted investor sentiment on the economy ahead of the key jobs report slated for Friday.

The private sector created 749,000 jobs in September, according to ADP data on Wednesday, topping economists' expectations for a gain of the 650,000.

"We look for an 950K increase in Friday’s private payroll number, slowing marginally from 1,027K in August and 1,481K in July.  But this is far from certain, given the deviation between the ADP (NASDAQ:ADP) and official numbers since Covid struck," Pantheon Macroeconomics said in a note.

The housing market, meanwhile, remained robust as the National Association of Realtors survey showed pending home sales increased a record pace of 8.8% last month.

Homebuilders were sharply higher following the survey, with SPDR® S&P Homebuilders ETF (NYSE:XHB) up more than 1%, led by Lennar (NYSE:LEN), up more than 3%.

On the manufacturing front, Chicago PMI jumped to 62.4 from 51.2, markedly topping estimates of 52.

The trio of bullish economic reports come at a time when investor hopes for further federal stimulus were given a boost after U.S. Secretary Steven Mnuchin told CNBC he was "hopeful" about getting a deal done.

Stocks linked to the progress of the economy found their footing, with banks, cruise operators, and airlines trading higher.

Airlines stand to lose big if Congress fails to reach an agreement on the proposed $2.2 trillion aid package that includes funds for the industry as well as unemployment benefits, direct payments to households and small business loans.

Citigroup (NYSE:C) rose more than 2%, United Airlines (NASDAQ:UAL) was up 3% and Norwegian Cruise Line Holdings (NYSE:NCLH) was up more than 5%.

Tech was also among the biggest gainers. Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) and (NASDAQ:AMZN) were up more than 1%. While Facebook (NASDAQ:FB), and Alphabet (NASDAQ:GOOGL) also traded above the flatline.

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (India) English (Canada) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
Saving Changes


Download the App

Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors. is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.