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Investing.com — U.S. stock markets opened higher on Monday, with Big Tech megacaps buoyant after the Organization for Economic Cooperation and Development said that talks on a new system for taxing multinationals had failed to reach an agreement.
That leaves the likes of Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Facebook (NASDAQ:FB) and Alphabet (NASDAQ:GOOGL) free to carry on using their current tax minimization strategies for the foreseeable future, despite concerns on the part of regulators on both sides of the Atlantic.
Optimism ahead of the scheduled release of its 5G iPhone 12 on Tuesday also supported Apple stock, which rose 3.1% in early trading to its highest in over a month.
By 9:45 AM ET (1345 GMT), the Dow Jones Industrial Average was up 121 points, or 0.4%, at 28,708 points, while the S&P 500 was up 0.8% and the Nasdaq Composite was up 1.2%.
Investors were showing an increased willingness to look through the short-term deadlock over stimulus talks in the U.S. and focus on the prospect of a more effective package being agreed in the new year under a new administration.
Morgan Stanley (NYSE:MS) strategists argued in a note to clients that any such delay will hardly be fatal to the recovery, given that households appear to have been building up reserves over the summer.
“It’s possible that a stimulus delay wouldn’t fully develop into the economic challenge it has the potential to be,” Morgan Stanley’s Mike Zezas argued. “Our economists now see evidence that U.S. consumption can carry on for longer without fiscal support, given built-up excess household savings. This is good news as there are many viable political paths towards stimulus over the next three months.”
