US: Tech shares lead stocks higher, Nasdaq +2.1%

[NEW YORK] Wall Street stocks rallied on Wednesday, with tech shares leading, as investors shrugged off a deadlock in federal stimulus talks while expressing relief at Kamala Harris's selection as the Democratic vice-presidential nominee.

The Nasdaq finished up 2.1 per cent at 11,012.24.

The Dow Jones Industrial Average gained 1.1 per cent to 27,976.84, while the S&P 500 jumped 1.4 percent to 3,380.35, about six points from a fresh record.

Analysts said investors prefer California senator Harris to other leading choices, especially Massachusetts senator Elizabeth Warren, a proponent of raising taxes on the wealthy and aggressive changes to rein in Wall Street.

Harris is "a choice more towards the centre of the Democratic party," said Gregori Volokhine of Meeschaert Financial Services.

"She has never been particularly anti-business. She's not Elizabeth Warren."

There was no movement on stimulus talks in Washington as US Treasury Secretary Steven Mnuchin accused Democratic leaders in Congress of playing politics, while House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer countered that the Trump administration had refused to budge on the size of the package after Democrats slashed their offer.

Large tech companies including Apple, Facebook and Netflix all won solid gains, while Tesla surged 13.1 per cent after announcing a five-for-one stocks split, a move that could make it easier for small shareholders to acquire shares.

Moderna gained 0.7 per cent after announcing it reached a deal worth up to US$1.5 billion to deliver coronavirus vaccine, the latest in a series of announcements by pharmaceutial companies. The vaccine candidates are still under development and await regulatory approval.

Uber Technologies fell 1.2 per cent after the company said it could temporarily idle operations in its home state of California following a court ruling requiring it to classify drivers as employees.

Uber and rival Lyft are backing a referendum in the state to overturn the law.

AFP