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Summary
- The three major US stock indices closed at record high levels on Monday amid hopes around additional coronavirus stimulus and economic recovery.
- While the Dow Jones Industrial Average closed higher by 237.52 points, or 0.76 per cent, to 31,385.76, the S&P 500 gained 28.76 points, or 0.74 per cent, to 3,915.59. The NASDAQ Composite settled 131.35 points, or 0.95 per cent, to 13,987.64.
- Walt Disney, Cisco Systems, and General Motors closed higher between 1.79 per cent and 4.9 per cent ahead of their earnings this week.
The three major US stock indices closed at record high levels on Monday amid hopes around additional coronavirus stimulus and economic recovery. The investors were optimistic after Treasury Secretary Janet Yellen said the United States could return to full employment in 2022 if Congress approved President Joe Biden’s US$1.9-trillion fiscal aid package to boost recovery amid coronavirus pandemic.
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On Friday, the Senate and House each passed a resolution to allow passage of the package through the Senate with a majority. The sentiment was also higher amid a push in vaccine deployment with nearly 32,780,860 doses being administered to the public so far, and new COVID-19 infections trending lower.
While the Dow Jones Industrial Average closed higher by 237.52 points, or 0.76 per cent, to 31,385.76, the S&P 500 gained 28.76 points, or 0.74 per cent, to 3,915.59. The tech-heavy NASDAQ Composite settled 131.35 points, or 0.95 per cent, to 13,987.64. The Russell 2000 climbed 2.53 per cent to another record high. The small-cap benchmark index has advanced over 15 per cent this year.
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Energy sector rallies
The energy sector rallied as Brent crude futures topped US$60-per-barrel mark for the first time in over a year. The sector climbed over 4 per cent on Monday.
Airline stocks fly
Airline stocks were in demand among investors amid reports of the COVID-19 stimulus package, including certain payroll assistance for the airline sector. While American Airlines closed higher by 3.4 per cent, the United Airlines jumped 5.24 per cent, and Delta climbed 5.10 per cent.
READ MORE: Bitcoin Hits Record $44,500-Mark On Tesla’s $1.5-Billion Investment
Bitcoin hits a record high
Bitcoin hit a record high above US$44,000 after Tesla announced its plan to invest nearly US$1.5 billion in the cryptocurrency. The electric automaker also said that it would start accepting payment in bitcoin for its products.
Meanwhile, companies such as Twitter, General Motors, Coca-Cola, and Disney are scheduled to report their earnings this week. Walt Disney, Cisco Systems, and General Motors closed higher between 1.79 per cent and 4.9 per cent in Tuesday’s trade.
