US stocks climb amid optimism around further economic stimulus

trader, NYSE
  • US stocks climbed on optimism surrounding the potential for more fiscal stimulus measures being passed by Congress.
  • The latest compromise called for a $1.6 trillion stimulus package that would include another round of direct payments to individuals.
  • Initial weekly jobless claims fell to 837,000, which was lower than expectations and suggests that the ongoing economic recovery is trudging along.
  • Watch major indexes update live here.

US stocks climbed on Thursday amid increased optimism that an additional round of fiscal stimulus could be passed by Congress prior to the upcoming November presidential election.

The latest (potential) compromise between Republicans and Democrats called for an up to $1.6 trillion stimulus bill that would include another round of direct payments to individuals.

Talks between House Speaker Nancy Pelosi and Treasury Secretary Steve Mnuchin are set to continue today. The potential deal would be lower than Democrat’s proposed $2.2 trillion stimulus bill.

Also helping the markets on Thursday were better than expected initial weekly jobless claims, which fell to 837,000. That figure was better than consensus estimates of 850,000, and 36,000 lower than last week’s read of 873,000.

Here’s where US indexes stood at 9:55 a.m. on Thursday:

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The SPAC craze continued on Thursday with Playboy set to go public via a merger with Mountain Crest Acquisition in a dead valued at $381 million.

Elsewhere, the Federal Reserve has decided to extend the limit on banks ability to buy back stock and issue dividends until the end of 2020.

Gold rose as much as 1.3%, to $1,909.33 per ounce.

Oil prices were mixed. West Texas Intermediate crude fell as much as 3.2%, to $38.92 per barrel. Brent crude, oil’s international benchmark, rose 3.9%, to $42.56 per barrel, at intraday highs.

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