By Yasin Ebrahim
Investing.com – The Dow surged Monday, led by sectors tied to the economy, with financials and industrials up strongly amid renewed stimulus after House Speaker Nancy Pelosi suggested a deal to roll out more aid was still on the table.
The Dow Jones Industrial Average rose 1.78%, or 482 points. The S&P 500 was up 1.48%, while the Nasdaq Composite gained 161%.
Industrials and financials rose more than 2%, with the latter getting a boost from banking stocks as renewed hopes for coronavirus stimulus lifted sentiment on the recovery.
JPMorgan Chase (NYSE:JPM), Citigroup (NYSE:C) and Bank of America (NYSE:BAC) rose more than 3%.
Hope for further stimulus from Congress comes after Pelosi on Sunday said Democrats would move ahead with a smaller $2.4 trillion aid package that could come to a vote as soon as next week.
The fiscal package would include unemployment benefits, direct payments to households and small business loans as well as aid for airlines.
Airlines rallied sharply, lifting industrials higher, with Delta Air Lines (NYSE:DAL) and United Airlines (NASDAQ:UAL), up more than 7%. United Airlines also received a boost after the carrier said its pilots agreed to reduce their working hours to avoid furloughs that were set to begin in October.
Tech, meanwhile, pushed the broader market higher. Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) Alphabet (NASDAQ:GOOGL) Amazon.com (NASDAQ:AMZN) and Facebook (NASDAQ:FB), which together make up a quarter weighting of the S&P 500, traded higher.
In other news, Uber Technologies (NYSE:UBER) was granted a new license to operate in London after winning its appeal against London’s transport authority, Transport for London, sending its share price 4% higher.
Caesars Entertainment (NASDAQ:CZR) surged 5% after tabling a £2.9 billion to buy sports betting site William Hill.
The strong day of gains on Wall Street comes ahead of a widely expected bout volatility as President Trump and Democratic presidential hopeful former Vice President Joe Biden are set to square off in their first of three debates starting from Tuesday. The U.S. general election is just 36 days away.