New York, Wall Street’s main indexes were up after a weak start on Tuesday as investors waited for the outcome of Georgia’s Senate runoff elections, which are expected to determine the balance of power in Washington, Reuters reported.
While a “blue sweep” of Congress could usher in greater fiscal stimulus to aid the coronavirus-ravaged economy, it could also pave the way for President-elect Joe Biden to push through greater corporate regulation and higher taxes, hurting some areas of the market.
The Cboe Volatility Index flip-flopped after closing at its highest level in two months in the prior session, which saw Wall Street’s main indexes drop to two-week lows on concerns over a persistent surge in coronavirus cases.
All major S&P sectors were higher, with energy stocks surging about 2% on the back of higher oil prices.
The dividend-paying defensive sectors – consumer staples , utilities and real estate – were the laggards.
At 09:48 a.m. ET the Dow Jones Industrial Average rose 125.12 points, or 0.41%, to 30,349.01, the S&P 500 gained 16.43 points, or 0.44%, to 3,717.07 and the Nasdaq Composite gained 74.48 points, or 0.59%, to 12,772.93.
ISM survey showed U.S. manufacturing activity rose to its highest level in nearly 2-1/2 years in December, likely as spiraling new COVID-19 infections pulled demand away from services towards goods.
U.S.-listed shares of China Telecom Corp Ltd and China Mobile Ltd added about 10% each, while those of China Unicom Hong Kong Ltd advanced 16% after the NYSE reversed its decision to delist the stocks.
Advancing issues outnumbered decliners by a 2.6-to-1 ratio on the NYSE and by a 2.4-to-1 ratio on the Nasdaq.
The S&P 500 posted seven new 52-week highs and no new lows, while the Nasdaq recorded 54 new highs and two new lows.
Source: Saudi Press Agency