Business_news Dow climbs 358 points as Trump stimulus orders offset China tensions

Business_news

Scott Olson/Reuters

  • US stocks climbed on Monday as investors digested President Donald Trump’s weekend stimulus orders against China tensions and new coronavirus cases.
  • On Saturday, President Trump signed four executive actions to extend coronavirus aid after Congress failed to come to an agreement last week.
  • US-China tensions escalated when China imposed fresh sanctions on several members of Congress including senators Marco Rubio and Ted Cruz over Hong Kong. 
  • US coronavirus cases hit 5 million over the weekend, according to data from Johns Hopkins University.
  • Oil rose as Saudi Aramco said demand will continue to improve. 
  • Read more on business Insider. 

US stocks rose on Monday as investors weighed President Trump’s virus stimulus orders against escalating China tensions and increasing coronavirus cases. 

Investors are digesting the potential effect offour executive orders signed by President Donald Trump on Saturdayto extend fiscal assistance amid the coronavirus pandemic recession.

The orders include a temporarypayroll tax holiday, stop some evictions, and defer student-loan payments. It would also extend further unemployment benefits, but at $300 per week as opposed to the $600 per week that expired in July. 

Here’s where US indexes stood at the 4 p.m. ET market close on Monday:

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Trump’s actions come after Congress failed to make a deal on the next stimulus package last week. Democrats and Republicans have been battling over extending the $600 extra unemployment benefit. It is unclear if Trump’s actions are legal. 

“While the legality and details of the orders will undoubtedly be challenged, it may temporarily ease any market fears, while angering a sidelined Congress at the same time,” said Craig Erlam, senior market analyst at OANDA, in a Monday note. 

Treasury Secretary Steven Mnuchin said in a Monday interview with CNBC that adeal could happen this weekif Democrats and Republicans can compromise. 

Shares ofBoeingandCaterpillargained more than 5%.Airline stocksalso jumped after the Transportation Security Administration reported its highest number of travelers passing through checkpoints since the coronavirus pandemic hit the US in March. 

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Simon Property Grouprose as much as 11% on aWall Street Journal reportthat its in talks to turn Sears and JCPenney stores into Amazon fulfillment centers. 

Technology shares slumped, dragging the Nasdaq lower on the day. Shares ofMicrosoft,Facebook, andNetflixall slipped roughly 2%, whileAmazonand Google parentAlphabetalso fell.

Sports-betting stocks also fell amid growing concerns thatcollege football will be cancelled entirely in the fall. Eastman Kodak slumped 29% after its$765 million US government loan was put on pause.

Elsewhere, geopolitical tensions rose afterChina imposed fresh sanctions on 11 Americansincluding Republican Sens. Marco Rubio and Ted Cruz over Hong Kong. It’s the latest escalation of US-China tensions in recent months. 

New COVID-19 cases continued to climb. US coronavirus cases topped 5 million over the weekend, according to data from Johns Hopkins University. The US now makes up roughly a quarter of all coronavirus cases globally. More than 162,900 Americans have died from the virus. 

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Shares of Twitter rose on aWall Street Journal reportthat the company has held early talks with popular social-media platform TikTok. 

Foot Lockersurged after the company said it will report asurprise profit in its second quarter earningsrelease due August 21. The company’s same-store sales jumped in the quarter as stores reopened, it said. 

Oil rose as Saudi Aramco saiddemand will continue to improve for the commodity.West Texas Intermediate crudegained as much as 2.7%, to $42.33 per barrel.Brent crude, the international benchmark, rose 1.9%, to $45.26 per barrel, at intraday highs. 

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