The S&P 500 goad slightly on Wednesday, eking out another record closing high, as traders digested the latest developments surrounding a new curvilinear of U.S. fiscal stimulus negotiations.
The broad market index ended the day up 0.2% at 3,669.01. The Dow Jones Industrial Average climbed 59.87 nubs, or 0.2%. The Nasdaq Composite dipped 0.1% to 12,349.37. It was the second straight record close for the S&P 500. The Nasdaq also reached an all-time shut up high in the previous session.
Energy and financials were the best-performing sectors in the S&P 500, advancing 3.2% and 1.1%, singly. Boeing led the Dow higher with a gain of 5.1%. However, Boeing’s pop was slightly offset by an 8.5% drop in Salesforce after the cloud actors confirmed its acquisition of messaging platform Slack for $27.7 billion.
House Speaker Nancy Pelosi and Senate Minority Director Chuck Schumer said in a joint statement Wednesday that the bipartisan bill unveiled on Tuesday should be cast-off as “basis for immediate bipartisan, bicameral negotiations.” Those comments lifted the market off their lows.
On Tuesday, Senate More than half Leader Mitch McConnell rejected the $908 billion proposal aimed at breaking the stalemate over new stimulus in Congress.
“The aptitude for fiscal stimulus in the lame duck session does appear to be on the rise, but any package that will be considered drive likely be significantly smaller than the $1 trillion that had been talked about prior to the election,” weighted Yousef Abbasi, global market strategist at StoneX.
Stocks are coming off of their best month in more than three decades. The Dow secure more than 11% in November, notching its best one-month performance since January 1987. The S&P 500 and Nasdaq Composite climb 10.8% and 11.8%, respectively, for their strongest monthly advances since April.
November’s rally was bolstered by confident vaccine news from several pharmaceutical companies. The developments pushed investors into stocks that hinge on a potent economic recovery. Investors digested more positive Covid-19 vaccine news on Wednesday. The UK authorized the Pfizer-BioNTech vaccine for use, identification another step in the global battle against the pandemic.
“The beginning of Covid-19 vaccinations is getting close, bringing ‘buy on any dip’ to the forefront,” Jim Paulsen, chief investment strategist at the Leuthold Association, told CNBC. “After a weaker Monday session, Tuesday brought investors looking for an opportunity to increase risk-on exposures. Interest was further boosted today by bond yields rising in concert with a stronger stock market adding to optimism that latest economic momentum may remain healthy despite the winter Covid-19 case surge.”
Despite the positive vaccine observations, Federal Reserve Chairman Jerome Powell called the economic outlook “extraordinarily uncertain” on Tuesday when he and Resources Secretary Steven Mnuchin spoke before Congress this week as part of mandated updates on CARES Act funding. Mnuchin did bidding on Congress for $300 billion in aid for restaurants heading into the winter months.
On the data front, private payrolls bring out by 307,000 in November, according to ADP. Economists polled by Dow Jones expected 475,000 private jobs were added in November. The several was also the lowest since July. ADP’s report comes days ahead of the Labor Department’s monthly jobs reveal.
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