Wall Street rises, Nasdaq hits record high on recovery hopes

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In this news, we discuss the Wall Street rises, Nasdaq hits record high on recovery hopes.

(Reuters) – Major Wall Street indexes rose and the high tech Nasdaq hit a record high on Friday, as optimism around an economic rebound next year outweighed fears of an expected rise in prices. coronavirus infections after the Thanksgiving holidays.

Five of the top 11 S&P indexes were up by mid-morning, with information technology rising 0.8% at the request of home winners Apple Inc, Microsoft Corp and Nvidia Corp.

The sentiment was also lifted by President Donald Trump, saying he would leave the White House if the Electoral College voted for President-elect Joe Biden, the closest he has come to conceding the November 3 election, have declared market players.

“While the vast majority of traders certainly expected there to be an easy transfer of power, ultimately it does give a bit of confidence,” said Rick Meckler, partner at Cherry Lane Investments in New Jersey.

Market volatility, as measured by the CBOE Volatility Index, has slipped to levels last seen in late February. Trading volumes are expected to be low as the US stock market closes early on Friday.

As of 11:03 am ET, the Dow Jones Industrial Average was up 0.19%, the S&P 500 0.36% and the Nasdaq Composite 1.08%.

Hopes for more stimulus, signs of progress in COVID-19 vaccine development, and encouraging economic data have pushed all three major US stock indices up more than 10% this month and put the S&P 500 on the on track for its best November.

A rotation in sectors known to benefit from an economic recovery, such as industrials and financials, also propelled the Dow Jones to record levels and put it on track for its biggest monthly gain since 1987.

But with the next fiscal stimulus package now expected only after Biden was sworn in on Jan.20, traders said the nascent economic rebound could slow again.

“We’ve always been waiting for a relaunch and the market is certainly waiting for something,” said Joe Saluzzi, co-director of trading at Themis Trading LLC in New Jersey, adding that “it will likely take even longer”.

All eyes will be on the December 4 monthly employment report, with economists polled by Reuters predicting unemployment to fall from 6.9% to 6.8% but remain above the 4.5% rate in March, before much of the US economy was stranded. .

In thin business news, U.S.-listed shares of iQIYI Inc fell 2.3% after Reuters reported that Alibaba Group Holding Ltd and Tencent Holdings Ltd put talks on hold to buy a majority stake in the video streaming service.

The rising issues outnumbered declines 1.11 to 1 on the NYSE and 1.36 to 1 on the Nasdaq.

The S&P Index recorded 22 new 52-week highs and no new lows, while the Nasdaq recorded 127 new highs and seven new lows.

Report by Shivani Kumaresan and Shriya Ramakrishnan in Bengaluru; Editing by Saumyadeb Chakrabarty and Arun Koyyur

Original © Thomson Reuters

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