(Reuters) – US stocks rose on Friday and the S&P 500 and Nasdaq recorded their biggest weekly percentage gains since July as more federal fiscal support rose.
Negotiations on the COVID-19 stimulus package were expected to continue, even as US House Speaker Nancy Pelosi and Treasury Secretary Steven Menuchin failed to reach agreement on Friday.
Mnuchin introduced a new proposal on Friday afternoon, but a colleague of Pelosi’s said a comprehensive plan to prevent the epidemic was lacking.
Recent trade on Wall Street has been marked by headlines on fiscal aid, with the breakdown of three main indices on Tuesday after US President Donald Trump called off negotiations. He has since indicated that he was ready to resume discussions.
“New York, well the market’s response to the sudden change in terms of Trump’s support package,” said Tim Griskey, chief investment strategist at the Invertis Council of New York. “It’s a lot of politics, but many people believe that the economy really needs some economic support here, so that’s a good thing.”
S&P 500 technology shares rose 1.5%, and the sector gave the S&P 500 the biggest boost. The small-cap Russell 2000 index climbed 6.4% for the week, its largest percentage since the beginning of June.
The Dow Jones Industrial Average rose 161.39 points or 0.57% to 28,586.9, the S&P 500 gained 30.31 points or 0.88% to 3,477.14 and the Nasdaq Composite rose 158.96 points or 1.39% to 11,579.94.
For the week, the S&P 500 climbed 3.8% and the Nasdaq 4.6%, their largest weekly percentage gain since July. The Dow added 3.3%, its biggest weekly gain since August.
Strategists say investors have also begun to digest the possibility of Democratic candidate Joe Biden winning the November 3 presidential election. After a fierce debate last month several national elections jumped on Trump under his leadership.
Xilinx Inc said in a report that Advanced Micro Devices Inc increased 14.1% to buy chipmakers worth more than $ 30 billion. According to the General Electric Company report, which grew 2.9%, Goldman Sachs restored coverage on the American industrial conglomerate with a “buy” rating, saying the company would emerge stronger from the COVID-19 epidemic.
The S&P 500 energy index fell 1.6% following recent gains.
Advancing issues on the NYSE from 1.30-to-1 ratio; On the Nasdaq, 1.42-to-1 ratio favored advisers.
The S&P 500 posted a 76 new 52-week high and a new low; The Nasdaq Composite recorded 141 new highs and 18 new lows.
The volume was 8.92 billion shares on US exchanges with an average of 9.76 billion for the full session in the last 20 trading days.
Additional reporting by Devik Jain and Sagarika Jaisinghani in Bengaluru; Editing by Cynthia Osterman