Investors are hoping that Congress will agree on a new stimulus deal, despite fruitless negotiations in recent months.
On Sunday, House Speaker Nancy Pelosi told CNN that House Democrats may offer their latest stimulus proposal as legislation if revived talks with the Trump administration do not yield a deal her party can get behind.
The approaching end of the month might be another reason stocks are higher. After a bad month in the market, investors almost always have a need to buy some stocks at the end of it unless they decide they want to be less invested than before, said Sebastien Galy, senior macro strategist at Nordea. After Monday, there are only two trading days left in September.
But this doesn’t mean the worries that pushed stocks lower in the past weeks are gone.
The impending election, uncertainty about the future path of Covid-19, worries about rising infections in the winter and a slowdown of the economic recovery have been weighing on the market for weeks.
The week ahead will also be particularly busy with economic data and political events.
President Donald Trump and Democratic presidential candidate Joe Biden are facing off in the first of three debates on Tuesday, and the September jobs report — the last look at the employment situation before the election — comes out on Friday.