S&P 500, Nasdaq extend records as traders look ahead to further stimulus

Carmen Reinicke

Sep. 2, 2020, 09:45 AM

Spencer Platt/Getty Images

• The S&P 500 and the Nasdaq composite indexes extended records on Wednesday after closing at all-time highs on Tuesday.
• Traders are still watching for signs that Congress will reach a deal on another pandemic stimulus bill soon.
• The August ADP employment report said US companies added 428,000 jobs last month, less than half the median economist estimate of 1 million, suggesting the labor-market recovery has lost momentum.
• Read more on Business Insider.

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The S&P 500 and the Nasdaq composite indexes extended records on Wednesday after closing at all-time highs on Tuesday. The gains came as traders looked ahead to further economic relief.

Treasury Secretary Steven Mnuchin on Tuesday encouraged Congress to pass further stimulus, and he spoke with House Speaker Nancy Pelosi by phone, The Hill reported. But Democrats and Republicans remain locked in a stalemate over the next bill.

The August ADP employment report released on Wednesday said US companies added 428,000 jobs last month, less than half the median economist estimate of 1 million, suggesting that the labor-market recovery has lost momentum.

Here's where US indexes stood shortly after the 9:30 a.m. ET market open on Wednesday:

• S&P 500: 3,541.37, up 0.4%
• Dow Jones industrial average: 28,799.85, up 0.5% (154 points)
• Nasdaq composite: 11,995.72, up 0.5%

Investors will get more information about the US economic recovery with the release of the Federal Reserve's Beige Book on Wednesday.

The Labor Department will release weekly jobless-claims data on Thursday, and the August jobs report is due on Friday. The report is expected to show that the US added back jobs in August, but slower than in previous months.

While the stock-market recovery from March lows has been fueled by technology companies and low interest rates, "there is hope that the data will start to give more cause for optimism as governments and business seek to make a success of the reopening," Craig Erlam, a senior market analyst at Oanda, said in a Wednesday note.

Elsewhere in recovery news, AMC shares jumped after the company said it would open 140 movie theaters by Saturday, bringing its total operating to 420. The chipmaker Nvidia gained after saying it would release a new line of graphics cards later this month.

Earnings season continued. Shares of Macy's gained after the company reported a smaller-than-expected loss in the last quarter.

Oil gained after data indicated that a glut in US stockpiles decreased for the sixth straight week. West Texas Intermediate crude rose as much as 1.1%, to $43.21 per barrel. Brent crude, the international benchmark, gained 1%, to $46.05 per barrel, at intraday highs.