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Wall Street Surges at Open as Vaccine Hopes Fuel Broad Rally; Dow up 284 Pts

Stock MarketsDec 01, 2020 09:38AM ET
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© Reuters.

By Geoffrey Smith 

Investing.com -- U.S. stock markets surged to new record highs at the opening of trade on Tuesday, as optimism over the early roll-outs of vaccines to treat the Covid-19 coronavirus sustained a broad rally in everything from Brazilian iron ore miners to online pet food stocks.

The S&P 500 and Nasdaq Composite both opened at record highs, while the Dow Jones Industrial Average rose back toward the 30,000 level. By 9:35 AM ET (1435 GMT), the Dow was up 284 points or 1.0% at 29,922 points, while the S&P was also up 1.0% and the Nasdaq Composite was up 0.6%.

Helping the gains were reports that a bipartisan group of Senators had drafted a compromise plan to provide some $908 billion in fresh support for the economy, a figure that included $240 billion for state and local governments. That had been a key sticking point in negotiations between Congressional Republicans and Democrats before the election earlier this month. Newswire headlines suggested that Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi would speak later at 1 PM ET.

Before that, the session seemed likely to be dominated by testimony in Congress from Mnuchin and Federal Reserve Chairman Jerome Powell, the first time they have appeared together since Mnuchin refused to extend government authority for a handful of lending programs that the Fed had set up at the start of the crisis. 

Among the big initial gainers was Tesla (NASDAQ:TSLA) stock, which rose 3.6% to a new record high after S&P Dow Jones Global Indexes said that the stock would be incorporated into the S&P 500 in one go, rather than over two discrete dates.  Elsewhere, there were more big gains for vaccine makers after Moderna filed in the EU for emergency use authorization of its Covid-19 drug. Moderna (NASDAQ:MRNA) stock rose another 11%, while Pfizer (NYSE:PFE) stock rose 4.2%, a day after it and partner BioNTech (NASDAQ:BNTX) asked the Food and Drug Administration to approve their vaccine.

Apple (NASDAQ:AAPL) stock rose 2.8%, helped by reports that rival Samsung (KS:005930) will discontinue its Galaxy Note smartphone in the new year. That removes some competition for the iPhone maker at the high end of the market.

On the downside, Zoom Video Communications (NASDAQ:ZM) stock, a favorite stay-at-home play for most of this year, tumbled 11.8% after its latest quarterly report - although strong - failed to live up to the rarified expectations of its shareholders. 

However, the day got off to a bright start as research firm IHS Markit said its purchasing managers index for U.S. manufacturing rose in November despite the slowdown in broader economic activity due to the latest wave of the pandemic. The PMI rose to 56.7 from 53.6 in October.

"Although demand for consumer goods remained somewhat subdued, mainly reflecting rising virus infection rates, demand for investment goods such as business equipment and machinery rose especially sharply," IHS Markit said in its release. 

The more closely watched ISM manufacturing index fell, however, to 57.5 from a 20-month high of 59.3.

Wall Street Surges at Open as Vaccine Hopes Fuel Broad Rally; Dow up 284 Pts
 

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Comments (8)
Eudon Hickey
Eudon Hickey Dec 02, 2020 1:09AM ET
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With the democrats taking over, the dollar tells you what is going to happen(already weaker)
James Bell
James Bell Dec 01, 2020 3:02PM ET
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the vaccine will fix the economy. happy days are here again. forget about biden business tax increases (for now). 🤣
Rashard Clarke
Rashard Clarke Dec 01, 2020 3:02PM ET
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Trump lost get over it or go support his lawyer fees
Eudon Hickey
Eudon Hickey Dec 01, 2020 3:02PM ET
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Trump won, however it was stolen.That being said, America will lose #1 status in the world, hand power to China and the USA cant ever say anything to corrupt election ever again, as they played their “card” and displayed how elections can be stolen.
khizer sajjad
khizer sajjad Dec 01, 2020 2:51PM ET
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Mojo Snake
Mojo Snake Dec 01, 2020 12:05PM ET
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Most experienced traders will tell you that Hope is not a trading strategy but I am starting to think the Robinhood armatures are really on to something.  Everybody trade on hope it's safe now.
Keval Gala
Keval Gala Dec 01, 2020 11:20AM ET
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clear manipulation !! every country wants their stock market to reach to a new high.. really a fake rally..
Kenny Venezia
Kenny Venezia Dec 01, 2020 10:18AM ET
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what's this, the 75th time vaccines get priced in the market. what a complete joke as the real fundamentals continues its conflagration
Swapnil Bensekar
Swapnil Bensekar Dec 01, 2020 10:18AM ET
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Yes. Report are back to Vaccine.Now they will play around this.
Anil Wagh
Anil Wagh Dec 01, 2020 10:18AM ET
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Such joke usually happens in the market...........
Zhikang Sim
Zhikang Sim Dec 01, 2020 10:18AM ET
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also 75th times market bear due covid pandemic.....
Cippa Lippa
Cippa Lippa Dec 01, 2020 10:11AM ET
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The hope of the hopes....none is talking about bond markets crash??
HM HM
HM HM Dec 01, 2020 9:58AM ET
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Hope ??? Manipulation!
 
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