Shares on Thursday derailed gains and ended lower as investors waited for details of President-elect Joe Biden’s Covid-19 relief package.
The Dow Jones Industrial Average went red in the last hour of trading and finished nearly 69 points, up 0.22%, to 30,991. He touched an intraday record at 31,223.
The S&P 500 was down 0.38%. The Nasdaq, which surpassed the intraday record of 13,220, dropped gains and lost 0.12%.
The tech industry had a tough day, with Apple (AAPL) – Get the report, Amazon (AMZN) – Get the report and Facebook (FB) – Get the report all ending.
The Department of Labor reported that claims for unemployment rose to nearly a million last week as the coronavirus pandemic continued to encourage companies to lay off workers.
The number of Americans applying for unemployment benefits for the first time last week rose to 965,000, the largest increase in claims since March.
“At some point, the hard work figures as we saw (Thursday) may serve as a test for those asking for a correction, but it seems the market is of the opinion that the light at the end of the tunnel remains in sight, despite an intense vaccination. deployment, “said Mike Loewengart, CEO of E-Trade’s investment strategy.
“Also, a blacker-than-expected job report translates into a higher probability of a full-throat stimulus package, which acts perversely as a tail wind for the market.”
Recently, Biden advisers told Congress allies to expect a relief package price of about $ 2 trillion, CNN reported, citing two people briefed on the deliberations.
Biden is expected to announce his plans to relieve the coronavirus on Thursday evening.
The proposal is expected to include significant direct payments to U.S. families and significant state and local funding, including the distribution of the coronavirus vaccine, according to the report.
Treasury yields at the 10-year benchmark rose 1.092% on Thursday, near a ten-month high. Yields have risen recently as expectations that the Biden administration would increase government spending, adding trillions more to the nation’s debt and annual budget deficit.
Federal Reserve Chairman Jerome Powell, in a debate sponsored by Princeton University, said Thursday that the central bank will “inform the world” well in advance when it begins to cut asset purchases. The reduced conversation has increased recently along with discussions about more spending on relief.
“We know we have to be very careful when communicating about buying assets,” he said. “Now is not the time to start talking. I think this is another lesson from the global financial crisis; be careful not to leave too early. “
The actions ended mixed on Wednesday, shortly before the House voted to accuse President Donald Trump of inciting insurrection.
It was the second time Trump was indicted during his administration and he arrives just a week before leaving office.
The House voted 232 to 197 to accuse Trump. Ten Republican members joined Democrats in voting to oust the president.
It is unclear when the Senate will hold a trial, although outgoing majority leader Mitch McConnell told his Republican colleagues Wednesday that he would not begin until Trump’s term ends Jan. 20 and Biden takes over.
Delta Air Lines (DE) – Get the report it posted a larger-than-expected loss in the fourth quarter, but forecast a change in the industry this year as vaccine deployments accelerate and international travel restrictions are lifted later in the spring.