Stocks were rising on suggestions that President Donald Trump could leave the hospital Monday, and on optimism over a coronavirus relief package.
The Dow Jones Industrial Average gained 373 points, or 1.35%, to 28,056, the S&P 500 was up 1.38% and the Nasdaq rose 1.67%.
Leading the Dow higher were Caterpillar and Dow Inc. .
The president spent the weekend at Walter Reed Medical Center, recovering from Covid-19. While Trump’s medical team was positive about his prognosis, some observers observers questioned the official details of Trump’s health. Trump’s blood oxygen level had dropped twice in recent days, and doctors had given him a steroid to treat his symptoms.
Renewed hopes for stimulus talks between House Democrats and the White House also were giving stocks a boost.
Trump tweeted from the hospital over the weekend that “OUR GREAT USA WANTS & NEEDS STIMULUS.”
Video: Stocks tumbled after Trump tested positive for coronavirus—Here’s what six experts say to watch (CNBC)
“WORK TOGETHER AND GET IT DONE. Thank you!” he added.
House Speaker Nancy Pelosi said Friday that Trump’s diagnosis “kind of changes the dynamic” of the stimulus discussions.
Asked Sunday whether the tweet from Trump meant a coronavirus relief package was near, Pelosi responded, “No, it means that we want to see that they can agree on what we need to do to crush the virus.”
“We are encouraging clients to remain invested as additional fiscal stimulus should provide continued support for equity markets,” said Frank Panayotou, managing director at UBS Private Wealth Management. “Even with the major stock indices close to all-time highs again, we remain constructive on equity markets given the extraordinarily supportive global monetary and fiscal policy.”
Stocks ended lower Friday after Trump said he tested positive for the coronavirus and the U.S. added fewer jobs in September than forecast.
But the stock market finished the week higher: The Dow rose by 1.9%, and the S&P 500 and the Nasdaq each gained 1.5%.
Bristol-Myers Squibb agreed to buy drugmaker MyoKardia , which makes the experimental heart treatment mavacamten, for around $13.1 billion.
Bristol-Myers will pay $225 a share, for the Brisbane, California-based MyoKardia, a 62% premium to its closing price Friday of $139.60. Bristol-Myers said the deal would begin adding to its overall bottom line in 2023, and plans to finance the acquisition with a combination of cash and debt.
Regeneron Pharmaceuticals was trading higher Monday amid speculation the drugmaker could soon receive emergency use authorization from the Food and Drug Administration after its coronavirus treatment was given to President Trump.
This article was originally published by TheStreet.