(Bloomberg) —
U.S. stocks climbed to the highest in almost six weeks amid a rally in giant technology companies as traders awaited earnings from banks and news on a fresh round of economic stimulus.
The S&P 500 traded near session highs and the Nasdaq 100 surged more than 3%, with Amazon.com Inc. and Apple Inc. soaring ahead of key events. The online retailer kicks off its Prime Day on Tuesday, while the tech behemoth — whose price target was raised by RBC Capital Markets — is set to embrace 5G as one of its most significant additions to this year’s iPhones. Twitter Inc. rallied on an upgrade at Deutsche Bank, which also boosted its price estimates for other companies that derive their revenue from digital advertising such as Facebook Inc. and Alphabet Inc. Lenders including JPMorgan Chase & Co. and Wells Fargo & Co. report their results this week.
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Prospects for a quick end to the stalemate over a new stimulus faded Monday with members of the House being told not to expect any action this week and many Senate Republicans rejecting the White House proposal for a deal. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin are expected to talk more this week as they attempt to bridge the gap between the Democrat’s $2.2 trillion proposal and the administration’s $1.8 trillion counteroffer.
“The stimulus stalemate still looms large, though it failed to derail the market,” said Chris Larkin, managing director of trading and investment product at E*Trade Financial. “And with high expectations for big-bank earnings kicking off the season, we could get a clearer picture into just how far we’ve come in terms of economic recovery.”
Democrats attacked the Supreme Court nomination of Amy Coney Barrett as a move to kill the Affordable Care Act in the midst of a pandemic and sharply shift the court to the right at a Senate hearing that’s all but certain to lead to her confirmation just days before the election.
Elsewhere, oil slumped with workers in the U.S. Gulf heading back following Hurricane Delta’s landfall and Libya taking a major step toward reopening its biggest field. The offshore yuan sank after China’s central bank took steps to restrain the currency’s rally. The Treasury market was closed for a U.S. holiday.
Here are some key events coming up:
JPMorgan, Citigroup and BlackRock report earnings on Tuesday; results from Wells Fargo, Bank of America and Goldman Sachs are due Wednesday; Morgan Stanley’s earnings are scheduled for Thursday.U.K. Prime Minister Boris Johnson set a deadline of Thursday to thrash out the outline of a European Union trade deal.European Central Bank President Christine Lagarde leads off the virtual annual meetings of the International Monetary Fund and the World Bank Group. Through Oct. 18.
These are some of the main moves in markets:
Stocks
The S&P 500 climbed 1.8% as of 12:51 p.m. New York time.The Stoxx Europe 600 Index gained 0.7%.The MSCI Asia Pacific Index advanced 0.8%.
Currencies
The Bloomberg Dollar Spot Index gained 0.1%.The euro fell 0.2% to $1.1806.The British pound climbed 0.2% to $1.3068.
Bonds
Germany’s 10-year yield fell two basis points to -0.54%.Britain’s 10-year yield declined one basis point to 0.272%.
Commodities
The Bloomberg Commodity Index fell 0.5%.West Texas Intermediate crude declined 3.1% to $39.34 a barrel.Gold weakened 0.4% to $1,923.05 an ounce.
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