NEW YORK: Stocks and oil rallied on Thursday after reports that U.S. congressional leaders may be willing to restart negotiations on stimulus for beleaguered businesses.
Top Senate Democrat Chuck Schumer said that Republican Majority Leader Mitch McConnell had agreed to resume COVID-19 relief talks as cases surge across the country, CNBC reported.
The market reactions were “all about the stimulus negotiations,” said Edward Moya, senior market analyst at OANDA in New York. Numerous business leaders have warned of dire consequences from lockdowns amid a third wave of infections.
The Dow Jones Industrial Average rose 4.83 points, or 0.02%, to 29,443.25 and the S&P 500 gained 10.45 points, or 0.29%, to 3,578.24. The tech-laden Nasdaq Composite added 94.54 points, or 0.8%, to 11,896.15.
The Dow and S&P had been lower before the news.
Oil prices reversed losses and edged higher in after-market trade after Brent ended down 0.3% at $44.20 per barrel and U.S. crude settled 0.2% lower at $41.70.
Treasuries were little changed. The benchmark 10-year notes last rose 8/32 in price to yield 0.8554%, from 0.882% late on Wednesday. They had been up 9/32 earlier.
The market reversal came after stocks broadly declined and bond prices rose earlier Thursday on a weak reading for U.S. employment, with new COVID-19 restrictions seen possibly stifling economic recovery and tempering optimism about coronavirus vaccines.
Technology shares had already been edging higher earlier, as the new lockdowns reinforced expectations of demand for online services.
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