Stocks surrendered gains on Thursday and ended lower as investors waited for the details of President-elect Joe Biden’s aid package Covid-19.
The Dow Jones industrial average rose in the last hour of trading in the red, dropping nearly 69 points, or 0.22%, to 30,991. It hit an intraday record at 31,223.
The S&P 500 was down 0.38%. The Nasdaq, which set an intraday record at 13,220, gave up gains and lost 0.12%.
The tech sector has had a tough day with Apple (AAPL) – Get report, Amazon (AMZN) – Get report on Facebook (FB) – Get report already finished.
The Labor Department reported that jobless claims rose to nearly 1 million last week as the coronavirus pandemic continued to incite companies to shake off workers.
The number of Americans filing unemployment benefits for the first time last week rose to 965,000, the largest increase in claims since March.
“At some point, difficult numbers like we saw (Thursday) may serve as the focal point for those seeking redress, but the market’s view seems to be that the light at the end of the tunnel remains in sight, despite ‘ a vaccination roll out, ”said Mike Loewengart, managing director of investment strategy at E-Trade.
” A report on work that is darker than expected translates into a greater likelihood of a full-throat stimulus package, which serves perversely for the market. ‘
Biden’s advisers recently told allies in Congress to expect a $ 2 trillion price-relief package, CNN reported, citing two people briefed on the deliberations.
Biden is expected to announce its coronavirus relief plans on Thursday night.
The report is expected to include significant direct payments to U.S. families, and significant state and local funding, including for the distribution of coronavirus vaccines.
Yields on the 10-year treasury rose to 1,092% on Thursday, near the ten-month high. Yields have risen recently due to the expectation that the government in Biden would increase government spending, adding trillions more to the country’s swelling and annual budget deficit.
Federal Reserve Chairman Jerome Powell, in a discussion sponsored by Princeton University on Thursday, said the central bank would ‘let the world know’ in advance when it starts buying assets. Taper talks have increased in recent times, along with discussions about more aid spending.
“We know we have to be very careful about communicating about asset purchases,” he said. ‘This is not the time to talk about exit. I think this is another lesson from the global financial crisis. Be careful not to leave too early. ‘
Stocks ended mixed on Wednesday, shortly before the House voted to accuse President Donald Trump of inciting insurgency.
It was the second time Trump has been charged during his administration, and it comes just a week before he leaves office.
The House voted 232 to 197 to accuse Trump. Ten Republican members joined the Democrats to accuse the president.
It remains unclear when the Senate will hold a hearing, although outgoing majority leader Mitch McConnell said in a letter to Republican colleagues on Wednesday that it will only start before Trump’s term ends on January 20 and Biden the amp accepted.
Delta Luglyne (DAL) – Get report has a wider loss than expected in the fourth quarter, but predicts a turnaround in the industry as the rollout of vaccines accelerates and international travel restrictions are lifted later in the spring.