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Wall Street struggled on Tuesday to build on the previous session’s record closing highs and crude oil gained ground as investors looked to Washington for signs that an enhanced stimulus package would pass a Senate vote.
The S&P 500 and the Dow pared early gains and the Nasdaq was flat as market participants balanced near-term challenges with longer-term hopes for economic recovery and a return to healthy demand.
“You have government economic assistance coupled with Brexit, which is pushing stocks up in Europe, Britain and the US,” said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia. “But you have the $2,000 bonus passing the House and if the Senate doesn’t, they look like Grinches.
“You have to take these days between the holidays with a grain of salt because there’s limited liquidity,” Tuz added.
Also read: Asia stocks rise on US stimulus fix, Nikkei hits 30-year high
The US House of Representatives voted on Monday to meet President Donald Trump’s demand for $2,000 direct payments to Americans as part of the recently signed fiscal relief bill, sending the measure to the Republican-controlled Senate.
The Dow Jones Industrial Average fell 21.86 points, or 0.07 per cent, to 30,382.11, the S&P 500 gained 3.27 points, or 0.09 per cent, to 3,738.63 and the Nasdaq Composite dropped 1.91 points, or 0.01 per cent, to 12,897.51.
European stocks extended their year-end rally in the wake of the Brexit trade deal and as the European Union vaccination program got underway.
The pan-European STOXX 600 index rose 0.80 per cent andMSCI’s gauge of stocks across the globe gained 0.51 per cent.
Emerging market stocks rose 1.01 per cent. MSCI’s broadest index of Asia-Pacific shares outside Japan closed 0.98 per centhigher, while Japan’s Nikkei rose 2.66 per cent.
Also read: Market opens on lacklustre note, breadth turns negative
Crude prices advanced on the prospect of expanded pandemic aid, which could boost demand and spur economic growth.
US crude rose 1.15 per cent to $48.17 per barrel and Brent was last at $51.41 per barrel, up 1.06 per cent on the day.
US Treasury yields were little changed in choppy trading,and the yield curve was slightly steeper as investors awaited the Senate’s response to the higher stimulus cheque approved by the House.
Benchmark 10-year notes last fell 1/32 in price to yield 0.9347 per cent, from 0.933 per cent late on Monday.
The 30-year bond last fell 5/32 in price to yield 1.675 per cent, from 1.669 per cent late on Monday.
The dollar dipped and the euro gained ground as fiscal aid and the Brexit trade deal prompted forex traders to favour riskier currencies.
The dollar index fell 0.41 per cent, with the euro up 0.25 per cent to $1.2244.
The Japanese yen strengthened 0.22 per cent versus the greenback at 103.58 per dollar, while Sterling was last trading at $1.3496, up 0.35 per cent on the day.
Gold prices advanced as the dollar weakened on the prospect of more robust stimulus payments.
Spot gold added 0.4 per cent to $1,878.58 an ounce.
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