Shares lowered early gains on Friday, after the monthly employment report showed the US lost its jobs in December, while investors continued to look to the prospect of an additional fiscal stimulus in the future.
The S&P 500 stock index added 0.4%, while the Nasdaq Composite heavy technology advanced 0.8%. The Dow Jones industrial average fell 0.1%, or about 20 points, partially driven down by a decline in 3M industrial conglomerate shares.
All three indices closed at record highs on Thursday as investors focused on the potential to spend more on the government after victories in Georgia’s elimination races, which will give Democrats control of the U.S. Senate.
Meanwhile, the growing coronavirus pandemic continues to weigh on the economy. The Department of Labor report said Friday that the United States lost 140,000 jobs in December, ending seven months of job growth.
“So far, investors continue to look beyond the weakness of this report and other economic data, as they are confident that more fiscal stimulus is coming,” said Michael Arone, chief investment strategist at State Street Global Advisors. “And as the vaccine is distributed, this will only be temporary and we will be able to overcome the weakness of this number, hopefully in the not too distant future.”