Wall Street's attempts to recover from its strongest weekly fall pushed the major US stocks higher on Monday.

The focus remained on progress in negotiations on a new stimulus package for the US economy. Market participants also analyzed corporate reports and national statistics, which showed that manufacturing activity in the US continued to rise in January, although the pace of growth slowed more than expected. According to the ISM report, the manufacturing PMI fell to 58.7 in January from a downwardly revised 60.5 in December. While a reading above 50 indicates continued growth in the manufacturing sector, economists had expected the index to fall more modestly to 60.0.

On Tuesday the market saw a noticeable increase driven by heightened hopes for the approval of additional economic stimulus. US President Joe Biden said the meeting with 10 moderate Republican senators, organized to discuss additional incentives, was productive. Biden is pushing for a $ 1.9 trillion bailout package while Republicans are proposing an alternative $ 600 billion plan. After the meeting, a spokesman for Biden said the president intends to continue pushing for the larger bill even if it does not find support among Republicans.

On Wednesday the main driver for growth was the reporting of IT giants Alphabet (GOOG) and Amazon (AMZN). Besides, the market was supported by the published macroeconomic reports. The ADP report showed that US private sector employment rose much more than expected in January. Employment jumped 174,000 jobs in January after cutting 78,000 jobs in December, according to the report. Economists had expected employment to rise by 49,000 over. In turn, data from a study by the Institute for Supply Management (ISM) showed that service activity in the United States grew at a faster pace in January than in the previous month, indicating that the sector remains robust despite the fact that it bears the brunt of the recent Covid-19 restrictions. According to the report, the service sector activity index rose to 58.7 from a revised 57.7 in December. Economists had expected the index to be 56.8.

On Thursday the market reacted positively to the data on the US labor market. The Labor Department said the number of Americans filing new jobless claims fell last week, signaling a stabilization in the labor market as authorities began to loosen restrictions on businesses related to the pandemic. According to the report, the number of initial claims for unemployment benefits was 779,000 on a seasonally adjusted basis for the week ended January 30, up from 812,000 in the previous week. Economists had forecast 830,000 applications over the past week. Against this backdrop, the main US stock indexes rose by more than 1%.

The week ended with modest gains due to increased hopes for the approval of additional fiscal stimulus. Early Friday morning, the U.S. Senate passed a budget resolution that will allow for a $ 1.9 trillion COVID-19 relief package proposed by President Joe Biden. simple majority, i.e. without Republican support. The House of Representatives needs to re-approve the bill as new incentive amendments have been passed.