Wall St supported by Apple, stimulus bets as Fed takes center stage
New York, U.S. stock indexes rose on Tuesday as progress toward a massive government stimulus bill kept spirits high, while investors hoped for continued signals of easy monetary policy from the Federal Reserve’s final meeting of the year.
Apple Inc was the top boost to all three U.S. benchmarks, rising 3.5% to a more than three-month high after a report said it plans to increase iPhone production by 30% in the first half of 2021.
The S&P 500 materials sector was trading within spitting distance of a record high, Reuters remarked.
The Fed is also expected to signal easy monetary policy for the foreseeable future in its two-day meeting starting Tuesday. The recent coronavirus vaccine roll-out is expected to improve the central bank’s 2021 outlook.
At 12:06 p.m. ET, the Dow Jones Industrial Average was up 190.68 points, or 0.64%, at 30,052.23, the S&P 500 was up 25.63 points, or 0.70%, at 3,673.12. The Nasdaq Composite was up 72.32 points, or 0.58%, at 12,512.36.
Technology stocks added 0.9%. The sector has outperformed its peers through the pandemic due to its perceived resilience to virus-related disruptions.
Increased liquidity and ultra-low lending rates have seen investors flocking to stocks for returns through the COVID-19 pandemic, while recent optimism over a vaccine pushed the S&P 500 to a series of record highs last week.
Advancing issues outnumbered decliners for a 2.59-to-1 ratio on the NYSE and a 1.82-to-1 ratio on the Nasdaq.
The S&P index recorded 11 new 52-week highs and two new lows, while the Nasdaq recorded 116 new highs and 17 new lows.
Source: Saudi Press Agency