Stocks rose Thursday as Wall Street grew more optimistic lawmakers could secure further fiscal stimulus for the U.S. economy even if it comes in the form of smaller relief bills.
The Dow Jones Industrial Average rose 80 points, or 0.28%, to 28,383, the S&P 500 gained 0.54% and the Nasdaq was up 0.5%.
Morgan Stanley’s agreement to acquire Eaton Vance for $7 billion also was boosting sentiment.
International Business Machines rose after the computer giant said it would spin off its infrastructure division, helping IBM concentrate its focus on hybrid cloud growth.
Video: Market has priced in a ‘pretty high degree of uncertainty’ for U.S. election, strategist says (CNBC)
Shares of Regeneron Pharmaceuticals surged Thursday after President Donald Trump praised its coronavirus antibody treatment and the drugmaker said it would seek emergency use authorization from the Food and Drug Administration.
Stocks finished sharply higher Wednesday after Trump said he would consider alternative aid measures such as a new round of stimulus checks, the Paycheck Protection Program and support for airlines. House Speaker Nancy Pelosi also signaled support for a standalone airline stimulus bill.
Trump told Fox Business on Thursday that stimulus talks, which he declared over earlier this week, were showing progress, and could include support beyond the airline sector.
Jobless claims in the U.S. remain elevated, with the latest weekly data showing an additional 840,000 Americans filed for first-time unemployment benefits.
“Even though there is uncertainty now about the fiscal stimulus negotiations, regardless of who wins the election, we are likely to have additional fiscal stimulus,” said Nancy Davis, founder of Quadratic Capital and portfolio manager of the Quadratic Interest Rate Volatility and Inflation Hedge ETF IVOL.
With the uncertainty, she added, “I think it’s important for investors to have a diversified portfolio, with investments that are uncorrelated to each other. We should expect more uncertainty going forward.”
This article was originally published by TheStreet.