US stocks climb on investor hopes for stimulus ahead of Tuesday deadline

• US stocks gained on Monday as investors maintained optimism that Democrats and Republicans will pass fresh stimulus ahead of the November elections.
• House Speaker Nancy Pelosi expedited talks on Sunday, setting a 48-hour deadline for the White House and Democrats to reach a compromise.
• But any deal is likely to die in the Senate, as Republicans are pushing a $500 billion measure. A vote on the smaller proposal is set for Tuesday, and Democrats are all but certain to block it.
• Stimulus hopes offset concerns about rising COVID-19 cases. The US notched its fifth straight day of more than 50,000 new cases, and global cases passed 40 million on Monday.
• Watch major indexes update live here.

US equities gained on Monday as investors maintained hopes for stimulus negotiations to bring a deal ahead of the presidential election.

House Speaker Nancy Pelosi on Sunday set a 48-hour deadline for the White House and Democrats to reach a compromise on fiscal relief. She and Treasury Secretary Steven Mnuchin held multiple talks over the weekend.

While the White House hasn’t upped its $1.8 trillion counteroffer to Pelosi’s $2.2 trillion proposal, President Donald Trump has called for a larger deal.

Here’s where US indexes stood at 10 a.m. ET on Monday:

• S&P 500: 3,490.57, up 0.2%
• Dow Jones industrial average: 28,697.49, up 0.1% (21 points)
• Nasdaq composite: 11,707.21, up 0.3%

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Even if a deal is reached before Tuesday, Senate Republicans are all but certain to kill it. Senate Majority Leader Mitch McConnell plans to bring a $500 billion measure to a vote on Tuesday and has opposed any larger measure. Democrats, meanwhile, are likely to block piecemeal bills — leaving both parties stuck in attempts to pass their own packages.

The stimulus optimism offset concerns about rising COVID-19 cases in the US. Daily new cases have surpassed 50,000 for five days in a row, reigniting fears of more lockdowns and stymied economic growth. Global cases rose above 40 million on Monday, further fueling anxiety about a prolonged economic slump.

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The Monday climb extended the small rally that closed out last week. Stocks gained on Friday after retail sales beat expectations in September, signaling stronger consumer-spending trends heading into the holiday season. The University of Michigan’s consumer-sentiment gauge also beat estimates for a preliminary October reading, adding to hopes that the US economic recovery can continue without near-term fiscal support.

Concho climbed after the oil giant ConocoPhillips announced it would buy the firm in a $9.7 billion deal. The acquisition would be the first major oil-industry deal since its collapse at the start of the pandemic.

AMC Entertainment jumped after the theater chain said it would reopen locations in New York and Long Island.

Tesla gained after Wedbush analysts raised their price target for the stock to $500, implying a 14% gain from Friday’s close. The team praised the automaker’s better-than-expected deliveries in the third quarter, adding that Tesla is on track to hit 500,000 deliveries this year.

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Spot gold rose as much as 1%, to $1,918.61 per ounce. Treasury yields climbed, and the US dollar fell against major peers.

Oil futures traded mixed while holding their $40-per-barrel support. West Texas Intermediate crude rose as much as 0.8%, to $41.19 per barrel. Brent crude, oil’s international benchmark, climbed 0.7%, to $43.23 per barrel, at intraday lows.

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