Wall Street weighed down by fiscal aid uncertainty as tech boost fades

Cornelia Mascio
Agosto 1, 2020

Wall Street's main indexes jumped at the open on Friday, with Apple and Facebook hitting a record high as stunning quarterly reports from some of the biggest US tech firms helped keep nagging pandemic nerves at bay. Google parent Alphabet Inc fell 3.3% though, the biggest drag on the S&P 500 and Nasdaq, as it posted the first quarterly sales dip in its 16 years as a public company.

Negotiations over coronavirus relief aid continued, but the White House and Democrats were not yet on a path toward reaching a deal, hours before the expiration of a federal unemployment benefit.

"Markets are trading as if there's going to be an emergency stimulus or at least a stopgap measure".

"There's a lot of enthusiasm and investors certainly want stocks to go up, but we keep getting interrupted by the reality of the bad news".

USA stocks opened higher on a boost from technology companies.

Apple Inc surged as much as 7.1% to briefly take over Saudi Aramco as the world's most valuable public company, as it delivered year-on-year revenue gains across every category and in every geography.

Still, the S&P notched its fourth weekly gain in the past five and fourth straight month of gains, with lift from massive fiscal and monetary stimulus measures to buttress the United States economy during the pandemic.

Facebook (FB), Apple Inc (AAPL) and Amazon.com Inc (AMZN) shares are up between 4.6% and 7.7% on Friday boosted by upbeat second-quarter earnings figures.

A surge in the stock price of the tech titans, which make up almost a fifth of the S&P 500's value, and an estimated $5 trillion in asset purchases unleashed by the five biggest central banks globally have sent the tech-heavy Nasdaq to record highs and set the S&P 500 on course for its fourth straight monthly gain.

For the week, the S&P gained 1.73%, the Dow shed 0.15% and the Nasdaq climbed 3.69%.

Caterpillar Inc reversed premarket gains and fell 4.3% after the heavy equipment maker signaled more pain due to an uncertain economic outlook.

Declining issues outnumbered advancing ones on the NYSE by a 1.40-to-1 ratio; on Nasdaq, a 1.94-to-1 ratio favored decliners.

The S&P index recorded 25 new 52-week highs and no new low, while the Nasdaq recorded 92 new highs and 20 new lows.

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