World Market

 Stocks Whipsaw as Traders Weigh Odds of Stimulus: Markets Wrap

Stocks whipsawed as investors weighed the chances of a compromise on a new stimulus package amid concern over an uptick in global coronavirus cases. The dollar fell.

The S&P 500 pared most of its earlier rally after optimism faded that Congress would reach a spending deal with the White House. Stocks surged midday on news that Treasury Secretary Steven Mnuchin and the Democratic House leader were open to fresh talks. But a report that Speaker Nancy Pelosi’s fresh overture deviated only slightly from previous offers sparked concern that the two sides would remain far apart. The stock gauge still closed above a key support level: Its average price of the past 100 days.

Asian stocks looked set for tentative gains after a volatile U.S. session as investors weighed the chances of a new stimulus package against an uptick in global coronavirus cases. The dollar slipped. Futures in Japan, Hong Kong and Australia pointed to a modest rise. S&P 500 contracts climbed. Earlier, the benchmark pared most of an earlier rally as optimism faded that Congress would reach a spending deal with the White House. Sentiment had pushed shares higher on news that Treasury Secretary Steven Mnuchin and the Democratic House leader were open to fresh talks. But a report that Speaker Nancy Pelosi’s fresh overture deviated only slightly from previous offers sparked concern that the two sides would remain far apart. Treasuries were little changed.

Stocks in Asia rose Friday with U.S. equity futures as investors weighed the chances of a new American stimulus package against an uptick in global coronavirus cases. The offshore yuan climbed on optimism about inflows into Chinese assets. Japanese and South Korean shares opened higher.