Tech Shares Lead The Way As US Stocks Rise

Wall Street's main indexes closed higher on Monday as investors bet on some of the market's most high-profile stocks ahead of earnings reports while they weighed progress in US government stimulus efforts against rising Covid-19 cases.

Apple, Amazon.com, Facebookand Alphabet, all due to report earnings this week, were among the top boosters of the S&P 500. The technology-heavy Nasdaq posted a 1.7 percent gain, outperforming the S&P and the Dow.

Netflix and Microsoft also gained, noted John Augustine, chief investment officer at Huntington National Bank in Columbus, Ohio, who said investors were buying stocks in the group, which fell in recent sessions.

"When all six of them are higher they'll take markets with them," said Augustine, adding that with the exception of Facebook the so-called FAANG plus M stocks due to report have "a low bar to step over to beat earnings estimates".

The Dow Jones Industrial Average rose 0.43 percent, to 26,585, the S&P 500 gained 0.74 percent, to 3,239 and the Nasdaq Composite added 1.67 percent, to 10,536.

US Senate Republicans raced to complete details of a US$1 trillion coronavirus aid proposal before enhanced unemployment benefits expire on Friday.

The aid proposal, which could involve a reduction in emergency federal weekly unemployment benefits from US$600 to US$200, would then need to be negotiated with Democrats.

Few expected any major announcement at a two-day Federal Reserve meeting, but analysts said policymakers were likely to lay the groundwork for more action later this year.

Moderna shares finished up 9 per cent after US and company officials said its Covid-19 vaccine may be ready for widespread use by year-end. The drugmaker announced it started a trial to demonstrate safety and effectiveness, which could be the final hurdle prior to regulatory approval. (Reuters)