U.S. stock indexes rallied Monday morning, putting the Dow Jones Industrial Average and the S&P 500 on track to snap their five-day losing streaks.
The Dow climbed 203 points, or 0.59%, while the S&P 500 index and the Nasdaq Composite index gained 0.69% and 0.6%, respectively.
The early gains come as House Democrats are working on a draft proposal that would raise taxes on the wealthy and corporations to pay for their $3.5 trillion budget package.
Details of the proposal could still change, but it is said to include raising taxes on individuals making over $400,000 annually and married couples filing jointly earnings of $450,000 per year. It also includes raising the top corporate tax rate to 26.5% from 21% and increasing the top capital gains rate to 25% from 20%.
In stocks, Apple Inc. shares recouped a portion of Friday’s losses that came after a federal judge issued a permanent injunction that would allow players to avoid the 30% Apple Store fees.
Ticker Security Last Change Change % AAPL APPLE, INC. 148.87 -0.10 -0.07%
Virgin Galactic Holdings Inc. said it was postponing its joint space mission with the Italian Air Force until mid-October due to concern over a potential manufacturing defect in a component of the flight control system.
Ticker Security Last Change Change % SPCE VIRGIN GALACTIC HOLDINGS INC. 24.11 -1.06 -4.21%
In deals, TransUnion agreed to buy Neustar, a real-time information and analytics company, from a private investment group for $3.1 billion.
Ticker Security Last Change Change % TRU TRANSUNION 120.64 -2.64 -2.14%
Elsewhere, Kansas City Southern plans to accept a $27.2 billion cash and stock offer to sell itself to Canadian Pacific Railway Ltd. unless rival Canadian National Railway Ltd. is able to submit a more appealing deal by Friday. Canadian Pacific’s $29.6 billion offer was last month pushed aside after the U.S. Surface Transportation Board rejected its voting structure.
Elsewhere, Alibaba Group Holding Ltd. was lower after a Financial Times report said Beijing wants to break up payments app Alipay, which is owned by affiliate Ant Group.
Ticker Security Last Change Change % BABA ALIBABA GROUP HOLDING LTD. 165.53 -2.53 -1.51%
In commodities, West Texas Intermediate crude oil added 73 cents to $70.45 a barrel and was on track for its best close since Aug. 2. Gold, meanwhile, slipped $1.10 to $1,791 an ounce.
Overseas markets were mostly higher.
European bourses rallied across the board with Germany’s DAX surging 1%, France’s CAC 40 advancing 0.82% and Britain’s FTSE 100 up 0.77%.
In Asia, Japan’s Nikkei 225 and China’s Shanghai Composite edged up 0.22% and 0.33%, respectively, while Hong Kong’s Hang Seng index tumbled 1.5%.