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.  

Ticker Security Last Change Change % I:DJI DOW JONES AVERAGES 34723.8 +116.08 +0.34%SP500 S&P 500 4448.69 -9.89 -0.22%I:COMP NASDAQ COMPOSITE INDEX 15044.62783 -70.87 -0.47%

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. 

Ticker Security Last Change Change % KSU KANSAS CITY SOUTHERN 280.54 -0.08 -0.03%CP CANADIAN PACIFIC RAILWAY LTD. 68.03 -0.52 -0.76%CNI CANADIAN NATIONAL RAILWAY CO. 116.44 -2.46 -2.07%

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%. 

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