(For a live blog on the US stock market, click or type LIVE / in a news window)
* Hasbro falls after loss of earnings
* Modern as the late-stage study begins for the COVID-19 vaccine
* United States Republicans likely to reveal $ 1 trillion aid proposal
* Walgreens falls as CEO to resign
* Indices above: Dow 0.51%, S&P 0.63%, Nasdaq 1.21% (Add quote, details; Update prices)
By Medha Singh and Devik Jain
July 27 (Reuters) – US stocks rebounded on Monday when investors ignored mounting COVID-19 cases and tensions between the United States and China, betting instead on more stimulus to revive a battered domestic economy within a week. filled with quarterly earnings reports.
Still, safe-haven assets were in demand with gold prices at record levels amid concerns over a diplomatic dispute between the United States and China, the escalation of COVID-19 cases in the southern and western states of the United States. States and an unexpected rise in US jobless claims last week.
Trillions of dollars in fiscal and monetary stimulus have been instrumental in driving the S&P 500 to 5% of its record in February.
Expectations are running low for any major announcement at a two-day Federal Reserve meeting this week, but policymakers are likely to lay the groundwork for further action in September or the fourth quarter, analysts said.
Investors are also keeping a close eye on progress during the next round of government aid ahead of the enhanced unemployment benefits due to expire on Friday.
Republicans in the United States Senate are expected to present a $ 1 trillion coronavirus aid package drawn up with the White House on Monday, which will now be negotiated with Democrats.
Apple Inc, Amazon.com Inc, Facebook Inc and Alphabet Inc rose between 1.0% and 1.9%, and were among the top increases for the S&P 500 and Nasdaq. The four FAANG companies are among the 189 S&P 500 firms expected to report results this week.
“It will probably be the biggest week of the year in terms of what people expect due to the impact of the coronavirus outbreak,” said Brian Pirri, director of the New England Investment and Retirement Group in Boston.
“I don’t think we will see a slowdown in technology. There were some profit takings due to the high valuations, but I don’t see them going away anytime soon. ”
The technology, consumer discretionary and materials sectors increased more than 1.0% each. Bank stocks, which tend to weaken when the economic outlook darkens, lagged with their 1.4% drop.
At 10:56 am ET, the Dow Jones Industrial Average rose 134.48 points, or 0.51%, to 26,604.37, the S&P 500 rose 20.35 points, or 0.63%, to 3,235.98. The Nasdaq Composite rose 125.71 points, or 1.21%, to 10,488.89.
Investors will get their first glimpse of Thursday’s second-quarter GDP report, which likely shows the economy contracted by a record 34.1%.
Moderna Inc was up 7.6% when starting a US government-backed late-stage trial to assess its COVID-19 vaccine candidate in approximately 30,000 adults.
Hasbro Inc fell 6.5% after the toymaker missed quarterly earnings estimates, hit by production downtime due to coronavirus blockages.
Walgreens Boots Alliance Inc fell 2.7% on news that its chief executive, Stefano Pessina, decided to resign.
Advanced issues outperformed declines by a 1.60 to 1 ratio on the NYSE and a 1.55 to 1 ratio on the Nasdaq.
The S&P index recorded eight new 52-week highs and no new lows, while the Nasdaq recorded 44 new highs and 15 new lows. (Report by Medha Singh and Devik Jain in Bangalore; Shounak Dasgupta edition)
.
