US stocks opened Monday with gains to kick off the last trading week of 2020 on a higher note over hopes of Democrats pushing to increase the amount of stimulus checks that could result in more liquidity in the markets.
After holding up for almost a week, US President Donald Trump on Sunday signed the much-anticipated $900 billion COVID-19 stimulus package, in addition to a $1.4 billion federal spending bill that will fund the government through fiscal year 2021.
Although the stimulus includes paychecks for nearly 11 million jobless Americans, Trump called for lawmakers to increase the amount of direct check payments for individuals to $2,000.
Democrats widely support the increase in direct payments, as the House of Representatives is set to vote on it Monday. But the measure faces dim prospects in the Senate, where Republicans who oppose the increase hold the majority.
In hopes that additional liquidity would be injected into the markets, the US’ three major indexes started Monday with gains.
The Dow Jones were up 155 points, or 0.52%, at 30,354 points at 09.20 a.m. EDT (1420GMT), while the S&P 500 climbed 23 points, or 0.64%. Nasdaq futures were up by almost 1%.
The US dollar index on Monday briefly dipped below the psychological support level of $90 with expectation of higher liquidity, as investors once again turned to precious metals, pushing gold higher to $1,893 per ounce for 0.75% gain and silver to $26.6 per ounce for a 3.2% daily increase.
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