US open: Travel stocks jump as Democrats sound 'really optimistic' note on stimulus
Updated : 15:32
Wall Street's main market gauges were moving sharply higher at the start of trading after the speaker of the House of Representatives, Nancy Pelosi, voiced "real optimism" that a deal on a coronavirus spending bill could be signed on Tuesday.
And in the background, G-7 leaders pledged to do whatever it takes to restore economic growth.
Commenting on the situation in financial markets, Edward Moya, senior market analyst at Oanda, said: "Passive investing is starting to pick up after seeing the Dow Jones Industrial Average almost collapse 40% from its record high in early February.
"Volatility needs to continue to ease, but investors will not be surprised if we see one last major selloff before anyone will feels comfortable in calling a bottom. The most ravaged stocks are showing signs of life, so traders may feel we are nearing a key bottom."
As of 1502 GMT, the S&P 500 was 6.59 higher at 2,384.90, alongside an almost 1,400 point jump on the Dow Jones Industrials to 19,968.11, while the Nasdaq Composite was putting on 5.92% to 7,266.65.
West Texas Intermediate crude oil futures were drifting lower by 0.34% to $23.28 a barrel on the ICE, but the yield on the benchmark 10-year US Treasury note was going in the right direction, adding four basis points to 0.84%.
The Chicago Board of Options Exchange's VIX volatility gauge was down 8.75% to 56.20.
Overnight, Pelosi had indicated that the roughly $2.0trn spending package would not get past the House, which was controlled by the Democrats, unless a proviso was added for Congressional oversight of the $500bn of proposed financing for companies.
"Things like a $500 billion slush fund was really insulting," Pelosi said, according to Bloomberg.
June gold futures on COMEX were 4.3% higher to $1,643.40/oz.. alongside, as the US dollar funding squeeze abated, with analysts at Goldman Sachs pointing to prospects for an expanded Fed balance sheet and doubts around the euro area's survival as the proximate cause.
Stock in Best Buy was 14% higher after the discount retailer reported strong demand for the products needed during a prolonged lockdown, such as freezers and PC screens.
Investors were also eyeing graphics card maker Nvidia, with analysts at Needham pointing out its string cash position, which was second only to that of Taiwan Semiconductor.
Elsewhere in the semiconductor sector, Intel shelved its share buyback programme due to the uncertainty around the Covid-19 pandemic.
On the home front, sales of newly-built homes ran at a faster-than-expected clip last month.
According to the Department of Commerce, in February the annualised pace of new home sales fell by 4.4% month-on-month to reach 765,000.
Economists had forecast 750,000.
Dow Jones - Risers
Chevron Corp. (CVX) $62.08 14.50%
Boeing Co. (BA) $120.86 14.43%
American Express Co. (AXP) $77.69 12.66%
McDonald's Corp. (MCD) $153.66 12.08%
Visa Inc. (V) $151.59 11.68%
Walt Disney Co. (DIS) $95.66 11.54%
United Technologies Corp. (UTX) $83.60 11.54%
JP Morgan Chase & Co. (JPM) $86.83 9.88%
Exxon Mobil Corp. (XOM) $34.42 9.44%
Nike Inc. (NKE) $68.34 8.82%
Dow Jones - Fallers
Walmart Inc. (WMT) $112.54 -1.52%
Travelers Company Inc. (TRV) $87.43 -1.05%
Verizon Communications Inc. (VZ) $50.28 -0.05%
Dowdupont Inc. (DWDP) $30.52 0.00%
Walgreens Boots Alliance, Inc. (WBA) $44.51 2.08%
Pfizer Inc. (PFE) $29.18 2.42%
Procter & Gamble Co. (PG) $100.21 2.57%
Merck & Co. Inc. (MRK) $68.17 2.67%
Cisco Systems Inc. (CSCO) $35.88 3.70%
Johnson & Johnson (JNJ) $116.16 4.52%
S&P 500 - Risers
Norwegian Cruise Line Holdings Ltd (NCLH) $13.16 36.09%
L Brands Inc (LB) $12.05 31.41%
MGM Resorts International (MGM) $11.95 30.60%
Royal Caribbean Cr (RCL) $35.84 27.15%
Freeport-McMoRan Inc (FCX) $6.80 26.25%
Halliburton Co. (HAL) $6.56 25.19%
Whirlpool Corp. (WHR) $80.32 25.07%
American Airlines Group (AAL) $12.73 24.20%
Darden Restaurants Inc. (DRI) $50.06 22.01%
Tapestry Inc. (TPR) $12.88 21.74%
S&P 500 - Fallers
Regeneron Pharmaceuticals Inc. (REGN) $442.14 -2.96%
Kroger Co. (KR) $30.24 -2.70%
Activision Blizzard Inc. (ATVI) $55.23 -2.20%
Walmart Inc. (WMT) $112.54 -1.52%
Citrix Systems Inc. (CTXS) $119.81 -1.47%
American Electric Power Co. Inc. (AEP) $69.17 -1.19%
Travelers Company Inc. (TRV) $87.43 -1.05%
Comcast Corp. (CMCSA) $33.90 -0.80%
Clorox Co. (CLX) $169.40 -0.43%
Electronic Arts Inc. (EA) $95.07 -0.41%
Nasdaq 100 - Risers
American Airlines Group (AAL) $12.73 24.20%
Wynn Resorts Ltd. (WYNN) $68.00 18.12%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $166.74 16.41%
Nvidia Corp. (NVDA) $245.80 15.57%
Western Digital Corp. (WDC) $39.28 14.30%
Tesla Inc (TSLA) $494.27 13.81%
Cintas Corp. (CTAS) $178.00 13.33%
Paychex Inc. (PAYX) $56.94 13.00%
Expedia Group Inc. (EXPE) $57.19 12.47%
KLA-Tencor Corp. (KLAC) $130.51 12.16%
Nasdaq 100 - Fallers
Regeneron Pharmaceuticals Inc. (REGN) $442.14 -2.96%
Activision Blizzard Inc. (ATVI) $55.23 -2.20%
Citrix Systems Inc. (CTXS) $119.81 -1.47%
Comcast Corp. (CMCSA) $33.90 -0.80%
Electronic Arts Inc. (EA) $95.07 -0.41%
Shire Plc Ads (SHPG) $179.20 0.00%
Celgene Corp. (CELG) $108.24 0.00%
Mylan Inc. (MYL) $15.77 0.19%
NortonLifeLock Inc. (NLOK) $16.62 0.24%
Costco Wholesale Corp. (COST) $286.56 0.36%