US stocks open stronger, continuing rally

The tech-rich Nasdaq, coming off a record-setting Thursday close, climbed 1.6 per cent to 10,367.20, while the broad-based S&P 500 rose 1.3 per cent to 3,172.93. — Reuters pic
The tech-rich Nasdaq, coming off a record-setting Thursday close, climbed 1.6 per cent to 10,367.20, while the broad-based S&P 500 rose 1.3 per cent to 3,172.93. — Reuters pic

NEW YORK, July 6 — Wall Street opened higher after the long holiday weekend today, extending last week’s rally that was fuelled by positive economic signs despite the coronavirus pandemic.

About 15 minutes into the trading session, the Dow Jones Industrial Average gained 1.4 per cent to 26,201.01.

The tech-rich Nasdaq, coming off a record-setting Thursday close, climbed 1.6 per cent to 10,367.20, while the broad-based S&P 500 rose 1.3 per cent to 3,172.93.

Markets have shrugged off worrying news about the spike in Covid-19 cases around the country, which has led local authorities to return to more strict controls including requiring masks and obliging some businesses to close down once again.

Investors however also had some big deals to justify their optimism.

Uber said today it was buying delivery startup Postmates for US$2.65 billion (RM11.4 billion) in stock, in a move shaking up the sector, which has seen surging growth during the pandemic.

And a unit of billionaire Warren Buffet’s giant holding Berkshire Hathaway plans to acquire much of Dominion Energy’s natural gas assets for US$4 billion in cash in addition to debt.

Uber rose more than four per cent, and Berkshire gained 1.8 per cent while Dominion fell four per cent.

The lone economic report due out in a very thin week for data after last week’s flurry is the ISM non-manufacturing index today.

That measures the state of the massive services sector, which has been hard hit by the pandemic shutdowns. — AFP

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