Shares on Thursday gave up gains and ended lower, while investors waited for the details of President Joe Biden’s Covid-19 aid package.
The Dow Jones industrial average went red in the last hour of trading and fell by almost 69 points, or 0.22%, to 30,991. It reached an intraday record of 31,223.
The S&P 500 was down 0.38%. The Nasdaq, which hit an intraday record of 13,220, gave up gains and lost 0.12%.
The technology sector had a hard 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 unemployment claims rose to nearly 1 million last week, while the coronavirus pandemic continued to spur companies to lay off workers.
The number of Americans claiming unemployment benefits for the first time last week rose to 965,000, the largest increase in claims since March.
“At some point, the number of difficult jobs, as we saw (Thursday), may serve as an indication for those requesting a correction, but the market opinion seems to be that the light at the end of the tunnel remains visible, despite a difficult vaccination launch, “said Mike Loewengart, general manager of investment strategy at E-Trade.
“Moreover, a darker-than-expected job ratio translates into a higher probability for a full-necked stimulus package that acts perversely as a tailwind for the market.”
Biden’s advisers recently told Congress allies to expect a package price of about $ 2 trillion, CNN reported, citing two people briefed on the deliberations.
Biden is expected to announce plans for a coronavirus improvement Thursday night.
The proposal is expected to include significant direct payments to American families and significant state and local funding, including for the distribution of the coronavirus vaccine, according to the report.
The yield on the 10-year reference Treasury rose to 1.092% on Thursday, close to 10-month highs. Yields have risen recently in line with expectations that the Biden administration will increase government spending, adding billions more to the nation’s growing debt and annual budget deficit.
Federal Reserve Chairman Jerome Powell, in a discussion sponsored by Princeton University, said Thursday that the central bank will “announce to the world” well in advance when it begins to reduce asset purchases. The tapered discussion has increased recently, in parallel with discussions about more aid spending.
“We know we need to be very careful in communicating asset acquisitions,” he said. “It’s not the time to talk about the way out. I think this is another lesson of the global financial crisis, you have to be careful not to get out too early. ”
The actions ended on Wednesday, shortly before the House voted to accuse President Donald Trump of inciting insurrection.
It was the second time Trump has been indicted during his administration and comes just a week before he leaves office.
The House voted 232-197 for Trump’s indictment. Ten Republican members joined Democrats in voting for the president’s indictment.
It remains unclear when a trial will take place in the Senate, although outgoing Majority Leader Mitch McConnell told Republican colleagues in a letter Wednesday that it will not begin until Trump’s term ends on Jan. 20 and Biden takes office.
Delta Airlines (FROM) – Get the report recorded a higher-than-expected loss in the fourth quarter, but predicts a change in the industry this year as vaccine launches accelerate and international travel restrictions are lifted later in the spring.