US Stocks Race Higher on Stimulus Hopes

Equities

US stock index futures raced higher during the first trading hours of the fourth quarter amid growing optimism over a new fiscal stimulus bill. The Democrats were trying to push for a $2.4 trillion deal, while the number is still very far from the republican's scope. However, during the past couple of hours, the Trump administration has proposed a stimulus package worth more than $1.5 trillion. The offer raised the chances of both parties reaching a compromise and provide the US economy a new stimulus package. The Dow Jones Industrial Average futures rallied to 27951, the S&P500 futures advanced to 3382, and Nasdaq futures soared to 11506.

Dollar

The dollar index, which measures the greenback against a basket of major currencies, declined to 93.62 amid enhanced risk sentiment. The rising hopes for a compromise on the next fiscal stimulus bill drove investors towards riskier assets. On the other hand, market participants are awaiting the release of the September ISM Manufacturing PMI later today, and the US jobs report tomorrow to evaluate the US economic recovery. The EURUSD inched higher to $1.1757, the GBPUSD raced to $1.2950, and the risk-sensitive AUDUSD ascended for the fourth consecutive day, recording a high of $0.7197.

Metals

Precious metals prices edged higher as the dollar lost ground. The price of a gold ounce rose to $1900, the price of a silver ounce advanced to $23.88, and palladium futures hovered around $2340.

Oil

Oil prices made back previous losses as stimulus hopes bolstered risk appetite. Moreover, the US Energy Information Administration reported a decline in inventories by 1.98 million barrels. The West Texas Intermediate crude November delivery rose to $40.43, and Brent blend December delivery climbed to $42.54.

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