The S&P 500 remains above 3,450 with the focus on US fiscal stimulus talks.

• US stocks open strong gains amid hopes of additional US fiscal stimulus.
• Recent nervousness over the coronavirus could weigh on optimism and limit the rise.

The main US stock indices have opened with strong gains on Tuesday and they have recovered part of the strong setback of the previous day. The hope that US lawmakers will agree on additional stimulus has boosted investor confidence, which, in turn, has driven some monetary flows towards assets with the highest perceived risk, such as stocks.

The stagnation of the next round of fiscal stimulus has been weighing on investor sentiment for months, especially the expiration of the CARES Act in late July. House Democrats passed two additional aid bills that were rejected by the Republican-controlled Senate. The latest offer from House Democrats was $ 2.2 trillion, while US President Donald Trump has increased his offer for a $ 1.8 trillion aid package.

The Speaker of the House of Representatives, Nancy Pelosi said on Monday that the gap between the two parties was narrowing.. Pelosi and U.S. Secretary of the Treasury Steve Mnuchin are prepared to continue talking Tuesday, at a self-imposed deadline. to reach an agreement in principle that allows legislators to approve a plan before the presidential elections on November 3. Nonetheless, events related to the US fiscal stimulus will continue to play a key role in driving market risk sentiment.

Meanwhile, the concern that a sharp increase in new coronavirus cases could lead to new lockdown measures and be detrimental to the already fragile global economic recovery it could limit any strong advance. This, in turn, warrants some caution for aggressive bulls amid America’s uncertain political situation.