US stocks have risen more than 1 per cent in afternoon trading, recovering from declines in the previous session as investors were optimistic about more fiscal stimulus and mostly favourable updates on US President Donald Trump’s coronavirus symptoms.
Indexes added slightly to gains after Trump tweeted in the afternoon that he will be leaving the Walter Reed National Military Medical Center later on Monday.
He has been at the hospital since late Friday.
Shares of Regeneron Pharmaceuticals Inc jumped after Trump’s physician said he had been treated with Regeneron’s dual antibody treatment.
Doubts about the scale of further fiscal aid and a slowing economic recovery have weighed on the S&P 500 recently, with the benchmark index in September logging its worst month since the coronavirus-driven crash earlier this year.
White House Chief of Staff Mark Meadows said on Monday there was still potential to reach an agreement with US lawmakers on more coronavirus relief and that Trump was committed to getting the deal done.
“It seems like we’re going to get something. I think both sides need it for political reasons so the chances of getting something is better now than it was,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
The Dow Jones Industrial Average rose 369.01 points, or 1.33 per cent, to 28,051.82, the S&P 500 gained 47.85 points, or 1.43 per cent, to 3,396.29 and the Nasdaq Composite added 202.35 points, or 1.83 per cent, to 11,277.37.
Also helping the market was positive economic data.
After data last week showed an unexpected slowdown in the domestic manufacturing sector in September, figures on Monday showed activity in the broader services industry pulled above levels that prevailed before the COVID-19 pandemic.
Advancing issues outnumbered declining ones on the NYSE by a 2.83-to-1 ratio; on Nasdaq, a 2.93-to-1 ratio favoured advancers.
The S&P 500 posted 25 new 52-week highs and no new lows; the Nasdaq Composite recorded 104 new highs and 11 new lows.