"Renewed hopes of a bipartisan fiscal stimulus agreement are also lifting the mood, while indications that Democratic presidential nominee Joe Biden has widened his lead in the polls is reducing concern over the possibility of a contested November election," Wells Fargo Advisors said in a note.
The two sides have been negotiating for weeks over a follow-up package to the US$2.2 trillion CARES Act passed as the coronavirus pandemic erupted earlier this year.
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