Wall Street rallies on first day of October, boosted by economic cheer

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Oct 1 (Businesshala) – Wall Street shares edged higher on Friday, fueled by developments in Washington on positive economic data, progress in the fight against COVID, and possible passage of the infrastructure bill, in a buying mood for the fourth quarter. Started. .

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All three major US stock indexes oscillated earlier in the session, but began to trend higher by late afternoon, led by an economically sensitive cyclical.

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The rally gained momentum after the White House announced that US President Joe Biden was becoming more involved in the debate on the infrastructure spending bill on Capitol Hill.

Still, all three indices ended below last Friday’s close, with the S&P 500 (.SPX) and Nasdaq Composite (.IXIC) reporting their biggest weekly percentage declines since February.

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“There was a broad-based recovery today. The markets weren’t settled on new taxes or tapering today,” said David Carter, chief investment officer at Lenox Wealth Advisors in New York.

“There hasn’t been any major news from Washington in a turnaround for the past few weeks, so markets were forced to focus on positive economic data and a new COVID drug.”

Merck & Company Inc. (MRK.N) revealed that a recent study found its experimental oral drug for COVID-19 reduced the risk of death and hospitalization by nearly 50%, prompting a jump in its shares. came and fueled the spirit of economic reopening.

While Biden signed a stop-gap bill into law to keep the government running until December 3rd, lawmakers only managed to scuttle down the road.

This lack of resolution prompted rating agency Fitch to warn that the ‘AAA’ credit rating of the United States could be at risk.

“Markets don’t believe that debt will go down or that debt limits won’t deal, but it still adds uncertainty which is always a problem for markets,” Carter said.

A host of economic data released on Friday showed increased consumer spending, accelerating factory activity and increased inflation could help the US Federal Reserve shorten its timeline for tightening its monetary policy. Is.

Philadelphia Fed Chairman Patrick Harker reiterated his view expressed in a speech on Wednesday that he believed the central bank should begin reducing its asset purchases “soon,” but reiterated that they should Key interest rates were not expected to rise until the end of next year or until early 2023. .

Unofficially, the Dow Jones Industrial Average (.DJI) added 488.73 points, or 1.44%, to 34,332.65, the S&P 500 (.SPX) added 49.88 points, or 1.16%, to 4,357.42 and the Nasdaq Composite (.IXIC) added 108.76 points. , or 0.75%, to 14,557.34.

All 11 key sectors in the S&P 500 ended higher with healthcare stocks (.SPXHC) at the back of the pack.

Sector gains were cut as shares of COVID vaccine maker Moderna Inc (MRNA.O) fell in the wake of Merck News.

Economic optimism prompted value stocks (.IVX) to outperform growth (.IGX), and transports (.DJT) and smallcaps (.RUT) outperform the broader market.

Reporting by Stephen Culp; Richard Chang. editing by

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