(New everywhere, updates prices, market activity, and US market close comments)
* Schumer reportedly said McConnell agreed to further talks
* New aid to US companies supports economic growth
* US tech stocks push the Nasdaq up
By Alwyn Scott
NEW YORK, Nov. 19 (Reuters) – Stocks rebounded as the dollar fell on Thursday, and oil stabilized lower but rose after hours following a report that US lawmakers could resume negotiations on economic stimulus, which lifted the gloom that had persisted for most of the world. day.
Senior Senate Democrat Chuck Schumer said Republican Majority Leader Mitch McConnell had agreed to resume COVID-19 relief talks as cases rose across the country, CNBC reported.
“It’s all about restarting stimulus talks,” said Edward Moya, senior market analyst at OANDA in New York City, of the rapidly changing markets. “This should be a strong market catalyst and follow in Asia” on Friday, Moya added.
The Dow Jones Industrial Average rose 44.81 points, or 0.15%, to 29,483.23, the S&P 500 gained 14.08 points, or 0.39%, to 3,581.87 and the Nasdaq Composite added 103.11 points, or 0.87%, at 11,904.71.
The Dow and S&P had been lower before the news, while tech stocks edged up as new lockdowns raised expectations for demand for online services.
Oil prices reversed losses and edged up in aftermarket trade, after Brent stabilized 0.3% to $ 44.20 a barrel and US crude down 0.2% to $ 41.70.
The dollar index fell 0.235%, with the euro up 0.21% to $ 1.1877.
The benchmark 10-year Treasury bill price rose 12/32 to 0.8423%, from 0.882% Wednesday night.
Politicians seemed compelled to act after small business owners warned in recent days that their businesses may not survive further lockdowns caused by the current wave of infections.
The talks report, if confirmed, could prompt investors to assess the prospects for a stimulus bill before President-elect Joe Biden takes office, Moya said.
The news helped dispel the gloomy mood dominating the markets earlier in the day.
Stocks had broadly fallen and bond prices rose on a weak reading for US employment, as new COVID-19 restrictions could stifle economic recovery and dampen optimism about vaccines. The United States reported an unexpected increase in jobless claims during the week ended Nov. 14 – 742,000 from 711,000 the previous week and forecasts of 707,000 among economists polled by Reuters.
Positive news about possible vaccines helped push the MSCI World Index to an all-time high earlier this week. But investors had pulled out after countries announced record infection rates and tighter lockdowns to stem the virus.
The MSCI benchmark for global equity markets fell 0.45% to 610.11. The European FTSEurofirst 300 index fell 0.75% to 1,496.62.
(Report by Alwyn Scott edited by Alexandra Hudson, Marguerita Choy and David Gregorio)