US: Nasdaq climbs 1.5% to record close as stocks gain

[NEW YORK] The Nasdaq powered to a fresh record on Monday fueled by Microsoft's potential takeover of TikTok, as markets monitored talks in Washington on another federal relief package.

The tech-rich Nasdaq Composite Index surged 1.5 per cent to 10,902.80 at the close.

The Dow Jones Industrial Average gained 0.9 per cent to 26,664.40, while the broad-based S&P 500 climbed 0.7 per cent to 3,294.61.

Analysts credit aggressive monetary easing programmes by the Federal Reserve with boosting the market despite continued problems with the coronavirus that have begun to weigh on the recovery from the downturn.

Many market watchers also expect Washington to produce additional funds to support the US economy after supplemental unemployment benefits expired, although leading lawmakers remain far apart on a package.

Data released Monday showed US manufacturing continued to recover in July, even though firms are still shedding jobs.

This week's calendar includes earnings from Disney, as well as the July employment report, which will provide a window into the extent that the US coronavirus resurgence in recent weeks has dragged down the economy.

Among individual companies, Microsoft jumped 5.6 per cent as it works towards a potential acquisition of video-sharing app TikTok, which US President Donald Trump views as a national security threat.

Mr Trump said he set a date of around September 15 for the Chinese-owned company to reach a deal or it would be "out of business" in the United States.

AFP