By Yasin Ebrahim
Investing.com – The Dow climbed on Friday, as stimulus hopes were boosted on reports the White House raised its coronavirus stimulus offer to $1.8 trillion, though that is still short of the Democrat’s $2.2 trillion proposal.
The rose 0.49%, or 140 points. The was up 0.79%, while the gained 1.15%.
Treasury Secretary Steven Mnuchin is expected to discuss the new $1.8 trillion proposal with House Speaker Nancy Pelosi when the two speak Friday, The Wall Street Journal reported, citing sources.
Earlier on Friday, Senate Majority Leader Mitch McConnel said another fiscal package was unlikely in the next three weeks, while U.S. President Donald Trump hinted talks were progressing.
Reports the White House is raising its offer comes a day after Pelosi rejected the idea of passing standalone aid bills, and stressed the importance of a broader relief package.
Reports the White House is raising its offer comes a day after U.S. House Speaker Nancy Pelosi rejected the idea of passing standalone aid bills, preferring instead to roll out a broader relief package that would include support for individuals, small businesses and airlines.
Economists have repeatedly highlighted the importance of fiscal aid to keep the recovery intact.
Sectors tied to the progress of the economy advanced. Consumer discretionary was among the biggest gainers, and industrials was propped by up airlines.
Delta Air Lines (NYSE:), United Airlines (NASDAQ:) were up nearly 1%, while American Airlines (NASDAQ:) Group rose more than 1%.
Big tech continued to add to gains, led by a more than 2% rise in Microsoft (NASDAQ:) and Amazon.com (NASDAQ:). Apple (NASDAQ:) and Alphabet (NASDAQ:) rose 1%, while
Facebook (NASDAQ:) was roughly flat.
Tech was also pushed higher by a rise in chip stocks after strong gains in NXP Semiconductors NV (NASDAQ:) and Xilinx (NASDAQ:), with the latter rallying 13% on reports that Advanced Micro Devices (NASDAQ:) was in advanced talks to buy the company.
NXP Semiconductors NV (NASDAQ:) was up more than 4% as it lifted quarterly guidance, citi ng a “material improvement” in demand across all end market.
Energy proved an exception to the rally, down more 1%, as oil prices fell though are set to end the week sharply higher as weather-related supply disruptions eased demand concerns somewhat.
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