U.S. stocks closed firmly in the green on Oct. 20 as shares of Apple (AAPL) rose 4% and investors cheered a possible end to the government shutdown in Washington, D.C.
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The Dow Jones Industrial Average increased 515 points, or 1.12%, on the day. The benchmark S&P 500
index climbed higher by 1.07%, and the technology-laden Nasdaq advanced 310 points or 1.37%. Markets also got a lift as a slew of leading technology companies prepare to report their third-quarter financial results in coming days, and with a highly anticipated inflation report expected this week.
Apple led the market higher on Oct. 20, particularly the Dow. AAPL stock gained 4% after receiving an upgrade to Buy from Hold at Loop Capital, and after new data showed the latest iPhone 17 selling well in both the U.S. and China. Loop Capital said iPhone sales should expand through 2027 amid a refresh cycle.
Government Shutdown
Also giving a boost to stocks were comments by National Economic Council Director Kevin Hassett suggesting that the U.S. government shutdown could end this week. Hassett said that he believes moderate Democrats will come together this week to strike a deal and end the shutdown that is now in its third week.
U.S. stocks look to be moving past concerns about a potential trade war between the U.S. and China, and worries about loan losses at regional banks in America. Many of those worries have been allayed by a strong start to third-quarter earnings season, as well as anticipation of another 25 basis point interest rate cut from the U.S. Federal Reserve on Oct. 29.
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