US stocks higher in early trading as vaccine and stimulus hopes provide support

3.50pm: Positive momentum at open US stocks opened higher on Wednesday as coronavirus (COVID-19) vaccine rollouts and hope for final approval of a bigger US stimulus package fuelled expectations the world-biggest economy will recover from the pandemic slump in 2021. After around three-quarters of an hour of trading, the Dow Jones Industrial Average was up 124.19 points, or 0.4%, at 30,459.86, while the S&P 500 index also added 0.4% and the Nasdaq Composite gained 0.3%. Michael Hewson, chief market analyst at CMC Markets UK, commented: ”As we come out of the other side of this year’s economic shock, it’s interesting to note that forward inflation expectations are higher than they were at the end of last year. Given the deflationary shock that has just hit the global economy, this is a little surprising to say the least.  “The extent of the economic damage that is yet to manifest itself as a result of the changes to the global economy are likely to take place over the next five years.” 7.50am: Gains forecast at the start US stocks are expected to start Wednesday with another assault on recent record highs as investors bet on a strong economic recovery next year amid further coronavirus vaccine news, while a delayed Senate vote on the President Trump-approved stimulus package will be closely monitored. AstraZeneca and Oxford University’s coronavirus vaccine became the second to be approved by Britain on Wednesday, while European Union countries have begun rolling out Pfizer and BioNTech’s vaccine this week. However, the United States has also detected its first-known case of the new, highly infectious coronavirus strains already spotted in Britain and South Africa. S&P 500 futures were up around 0.4%, having shed 0.2% on Tuesday, with similar performances seen from the Dow Jones Industrials Average and Nasdaq Composite. US stocks had retreated from an intraday record on Tuesday after Senate Majority Leader Mitch McConnell put off a vote on President Donald Trump’s call to increase coronavirus (COVID-19) relief checks. Although many Republican Senators remain adamantly opposed to increasing relief payments, support is growing among them, including two from Georgia, who are running in crucial races that will determine who will control the Senate. The Senate is also due to hold a procedural vote on Wednesday that could pave the way for Congress to override President Trump’s veto of a key defense bill, as tension between the outgoing Republican president and party leaders grows. Trump on Tuesday ramped-up pressure on his fellow Republicans to support his decision to veto the bill because it does not repeal certain legal protections for tech giants, and to back $2,000 one-time stimulus checks for struggling Americans. On currency markets, the dollar’s weakness continued, with the US currency dropping again on Wednesday, the first day where the settlement of trades will be in 2021. Meanwhile, Bitcoin on Wednesday jumped to a record $28,599.99, after the digital currency almost quadrupled in value this year amid heightened interest from bigger investors. The world’s most popular cryptocurrency was last up 2.3% at $28,012. It has surged by nearly half since breaking $20,000 for the first time on December 16.