Stocks Vault as Traders Wait for Stimulus Package

U.S. stocks climbed on Thursday to kick off a new month and quarter as investors monitored progress on lawmakers’ negotiations on further fiscal stimulus.

The Dow Jones Industrial Average grew 74.05 points to 27,855.75.

The S&P 500 gained 14.72 points, to 3,377.72.

The NASDAQ added 97.71 points to 11,265.22.

Major technology shares provided the broader market with some support as Amazon, Microsoft, Alphabet and Facebook all jumped at least 1%. The S&P 500 tech sector was the biggest winner among the 11 groupings, up 0.9%.

The major averages are coming off their first down month since March. The 30-stock Dow lost 2.2% in September, a typically weak month for equities. The S&P 500 fell 3.9% for the month, while the technology-heavy NASDAQ dropped 5.2%.

However, all three benchmarks achieved strong gains for the third quarter. The S&P 500 rose 8.5% in the quarter for its sixth positive quarter in seven and the index is up 5% for the year.

The House of Representatives delayed a vote on the Democrats’ $2.2-trillion rescue package on Wednesday evening to allow for more talks, which some saw as a sign that a deal can still be reached.

White House chief of staff Mark Meadows told reporters late Wednesday that President Donald Trump has extended an offer for more than $1.5 trillion in stimulus. No further details were given on the exact figure except that anything around $2 trillion and above would be a “real problem.”

Mixed economic data also kept sentiment in check. U.S. manufacturing activity slowed in September as a purchasing manager’s index fell to a reading of 55.4 from 56 in August, according to the Institute for Supply Management.

The weekly jobless claims report came in better than expected, however. The U.S. Labor Department said first-time filers for unemployment benefits tallied 837,000 in the week ending Sept. 26. Economists polled by Dow Jones expected a total of 850,000.

Prices for the 10-Year Treasury stepped up, lowering yields to Wednesday’s 0.68%. Treasury prices and yields move in opposite directions.

Oil prices retreated $2.24 to $37.98 U.S. a barrel.

Gold prices rallied $20.70 to $1,916.20 U.S. an ounce.