Wall Street Close: US stocks plod on, but there is plenty of room for disappointments

• S&P 500 +5.44 +0.17% to 3,257.28.
• Dow +159.53 +0.60% to 26,840.40.
• Nasdaq  -86.73 -0.81% to 10,680.36.

US stocks were scrambling their way into fresh recovery high territories on Tuesday, with momentum carrying the benchmarks a step further over the line that marks the June highs in the Dow and S&P 500. The Nasdaq Composite hit another record high before retreating.

• S&P 500 top movers: OXY gains more than 11% to lead energy rally

Investors cheered that European Union leaders agreeing on a fiscal stimulus deal following a marathon extended EU summit that lasted 5 days until the 11th hour.

This was a deal regarded as appropriate help support the virus-stricken region to recover from the first wave.

The deal still needs to be ratified, and the biggest concern now is whether individual member nations will face opposition to the agreement and delay the Fund and MFF.

It is highly questionable as to whether the Recovery Fund would be sufficient to see the region through a second wave of COVID-19 and an associated period of lockdown,

analysts at Rabobank explained. 

Meanwhile, its all eyes on Washington, with fiscal stimulus discussions continuing Tuesday and this week.

The current programs under the more than $2 trillion Coronavirus Aid, Relief, and Economic Security Act are set to expire at the end of the month, yet there is still no traction in Congress as equities approach a fiscal cliff. 

The hopes, for now, of more stimulus, have so far been helping to put US equities on track for equaling their 2020 highs.

Room for disappointment for optimistic markets on a number of fronts

Investors are also pinning their hopes on a  coronavirus vaccine as the race to create an effective, safe inoculation is well and truly underway.

Good news about the early tests on a range of vaccines has sustained markets this week. But large-scale trials are yet to come, and the production job ahead massive,

analysts at ANZ Bank explained.

There’s plenty of room for disappointment for optimistic markets on a number of fronts.

Overnight the US accused China hackers of stealing vaccine-related research data, building on widespread accusations against Russia. It’s high-stakes stuff.

S&P 500 levels

• S&P 500 Price Analysis: Decent gap higher take the index closer to an important resistance