Stocks fell on Friday, with President-elect Joe Biden releasing a $ 1.9 trillion Covid-19 aid package, banks fell after the start of the earnings season and US retail sales were worse than expected.
The Dow Jones Industrial Average fell 359 points, or 1.16%, to 30,632, the S&P 500 fell 1.1% and the Nasdaq fell 1.06%. Shares plunged in the last hour of trading Thursday. The Dow and Nasdaq had set intraday records during the session.
Biden’s “American Rescue Plan” includes checks for $ 1,400 for individuals, in addition to the $ 600 provided in the last relief account. Other elements of the plan include the extension of supplementary unemployment payments and a moratorium on evictions and foreclosures until September.
The president-elect’s plan also provides funds for vaccine implantation to help fight the coronavirus pandemic, which as of Thursday has killed about 389,000 Americans.
The size of the aid package, as well as the potential for tax increases, has left many on Wall Street concerned that Biden might not win support in Congress for his proposals.
“To some extent, most of that optimism has been assessed, but the huge numbers have also invited some contemplation on whether the necessary bipartisan support will materialize for this huge amount,” said Jingyi Pan, IG market strategist in Singapore.
JPMorgan Chase shares (JPM) – Get report, Wells Fargo (WFC) – Get report and Citigroup (Ç) – Get report fell on Friday after the big banks announced fourth-quarter earnings.
JPMorgan Chase, the largest bank in the United States, posted much stronger than expected earnings in the fourth quarter, as the investment bank’s profit skyrocketed and the company reaped a $ 1.9 billion benefit from its provisions. previous credit cards.
“While vaccine developments and positive stimuli contributed to these reserve launches this quarter, our credit reserves of more than $ 30 billion continue to reflect significant short-term economic uncertainty and will allow us to withstand a much worse economic environment than the current basic predictions of most economists, ”said CEO Jamie Dimon in a statement.
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US retail sales weakened for the second consecutive month in December, the Commerce Department said on Friday, as consumers cut holiday spending amid an expanding job pandemic.