Wall Street claws back more of its losses on stimulus hopes

NEW YORK (AP) — Stocks are rising Monday, as hopes for economic aid from Washington help Wall Street recover all the losses from its initial, fearful reaction after learning that President Donald Trump tested positive for the coronavirus.

The S&P 500 was 1.6% higher in afternoon trading amid widespread gains. Energy companies, raw-material producers and other companies that would benefit most from a strengthening economy were helping to lead the way.

Treasury yields, stocks overseas and oil were all climbing after Trump and House Speaker Nancy Pelosi both noted the importance over the weekend of additional support for the economy. Trump also tweeted that he'll leave the hospital later Monday, though his condition remains clouded in uncertainty.

The Dow Jones Industrial Average was up 408 points, or 1.5%, at 28,091 as of 3:04 p.m. Eastern time, and the Nasdaq composite was 2% higher. The lift follows through on a comeback that helped markets cut their losses on Friday, after Trump’s condition became publicized.

Stocks initially tumbled Friday as the jolt of uncertainty raised concerns that a White House victory for Democrat Joe Biden would mean higher taxes and tighter regulations for companies, which could drag down their profits. But analysts said a Democratic sweep of the election could also raise the probability of a big government support plan for the economy, something that investors have been clamoring for since jobless benefits and other stimulus Congress approved in March expired.

The market’s moves on Monday and late Friday suggest investors are anticipating either a large stimulus effort or the increased likelihood of a “blue wave,” said Yousef Abbasi, global market strategist at StoneX.

Stocks got an immediate lift Friday afternoon after Pelosi told airline executives to stop the furloughs...