Shares on Thursday gave up gains and ended in a fall, as investors awaited details of President-elect Joe Biden’s Covid-19 aid package.
The Dow Jones Industrial Average went into the red in the last hour of trading and closed down almost 69 points, or 0.22%, to 30,991. It touched an intraday record of 31,223.
The S&P 500 fell 0.38%. Nasdaq, which reached an intraday record of 13,220, gave up gains and lost 0.12%.
The tech industry had a tough day, with Apple (AAPL) – Get report, Amazonas (AMZN) – Get report and Facebook (FB) – Get report everything ending.
The Labor Department reported that unemployment insurance claims rose to about 1 million last week, as the coronavirus pandemic continued to encourage companies to fire workers.
The number of Americans who filed for unemployment insurance for the first time last week rose to 965,000, the biggest increase in claims since March.
“At a certain point, numbers of difficult jobs as we saw (Thursday) can serve as bait for those who ask for a correction, but the market’s view seems to be that the light at the end of the tunnel remains in view, despite a slow vaccination implementation, “said Mike Loewengart, managing director of investment strategy at E-Trade.
“In addition, a job report that is darker than expected translates into a greater likelihood of a complete stimulus package, which perversely acts as a wind in favor of the market.”
Biden’s advisers recently told allies in Congress to expect an aid package of about $ 2 trillion, CNN reported, citing two people informed of the deliberations.
Biden is expected to announce his plans for coronavirus relief on Thursday night.
The proposal is expected to include substantial direct payments to American families and significant state and local funding, including for distribution of the coronavirus vaccine, according to the report.
The 10-year reference Treasury yield rose to 1.092% on Thursday, close to the 10-month highs. Yields have recently risen due to expectations that the Biden government would increase government spending, adding trillions to the country’s growing debt and annual budget deficit.
Federal Reserve Chairman Jerome Powell, in a discussion sponsored by Princeton University, said on Thursday that the central bank would “warn the world” well in advance when it started to reduce asset purchases. The conversation about Taper has increased lately along with discussions about more spending on humanitarian aid.
“We know that we need to be very careful when communicating about asset purchases,” he said. “Now is not the time to speak out. I think this is another lesson from the global financial crisis, being careful not to leave too soon. “
The shares ended mixed on Wednesday, just before the House voted to impeach President Donald Trump for inciting insurrection.
It was the second time that Trump was impeached during his administration and arrives just a week before leaving office.
The House voted 232 to 197 for Trump’s impeachment. Ten Republican members joined the Democrats to vote for the president’s impeachment.
It is not yet clear when the Senate will conduct a trial, although outgoing majority leader Mitch McConnell told Republican colleagues in a letter on Wednesday that it would not happen until Trump’s term ends on January 20 and Biden takes over. possession.
Delta Airlines (DAL) – Get report posted a larger-than-expected loss in the fourth quarter, but predicts a turnaround in the sector this year as vaccine launches accelerate and restrictions on international travel are lifted in late spring.