Stimulus Hopes Give Markets a Boost

Indexes closed higher despite ate stumble
By Newser Editors and Wire Services
Posted Jul 21, 2020 4:02 PM CDT
Stocks Close Higher Amid Stimulus Hopes
The New York Stock Exchange is shown, Tuesday, July 21, 2020   (AP Photo/Mark Lennihan)

Stocks closed mostly higher on Wall Street Tuesday despite a late stumble that nearly wiped out the market’s gains for the day. The S&P 500 added 0.2%, after having been up as much as 0.8% earlier. Banks and energy companies led the gains, outweighing losses in technology stocks, which pulled the Nasdaq index lower. The latest gains followed strength overseas as investors welcomed news that European leaders have agreed on a budget and coronavirus relief fund worth more than $2 trillion, the AP reports. The agreement comes as pressure intensifies on Congress and the White House to reach a deal on another economic aid package before a temporary boost in aid for unemployed Americans expires at the end of the month.

Hope for more economic aid from the government, following Europe’s example, helped put investors in a buying mood Tuesday, says Kristina Hooper, chief global market strategist for Invesco. “The US does not have the safety net that Europe has," she said. "This is an environment in which there is going to be a need for more fiscal stimulus or you could see real hit to consumers." The S&P 500 gained 5.46 points to 3,257.30. It was the index's third straight gain. The Dow Jones Industrial Average rose 159.53 points, or 0.6%, to 26,840.40. The Nasdaq dropped 86.73 points, or 0.8%, to 10,680.36, a day after notching its best day since the end of April and its latest all-time high.

(Read more stock market stories.)

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