The Dow and broader U.S. stock market traded higher on Tuesday, as investors gauged the likelihood of a stimulus breakthrough hours before a self-imposed deadline.
All of Wall Street’s major indexes traded higher after the open, mirroring a positive pre-market for stock futures . The Dow Jones Industrial Average rose by as much as 185 points.
The broad S&P 500 Index of large-cap stocks rose 0.6%, while the Nasdaq Composite Index gained 0.5%.
All 11 primary sectors tracked by the S&P 500 Index were in the green. Energy stocks were the top performers, followed closely by financials and industrials.
Equities plunged on Monday due to a combination of political turbulence and lack of stimulus breakthrough in Congress. The CBOE Volatility Index –a measure of investor anxiety–peaked near 30 on a scale of 1-100, where 20 represents the historical average.
Congress has until the end of Tuesday to reach a new fiscal stimulus agreement before the election. The self-imposed deadline was put in place on Sunday by House Speaker Nancy Pelosi, who gave Republicans one final opportunity to return to the negotiating table.
In an interview with ABC’s “This Week,” Pelosi said the deadline “only relates to if we want to get it done before the election, which we do.” Watch the video below for more:
As The Wall Street Journal reports, Pelosi and Treasury Secretary Steven Mnuchin have bridged the gap on some policy differences holding up a new stimulus deal, but several outstanding issues remain.
Republicans are also at odds about the size and scope of fiscal relief. President Trump supports a $1.8 trillion aid package, a figure Senate Majority Leader Mitch McConnell says is a non-starter . For the Democrats, the goalpost is $2.2 trillion.
McConnell said Saturday that Pelosi was blocking a bipartisan agreement that would provide aid directly to Americans :
If Speaker Pelosi ever lets the House reach a bipartisan agreement with the administration, the Senate would of course consider it. But Americans need help now.