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Stocks on Thursday dropped their gains and ended lower as investors awaited details of President-elect Joe Biden’s Covid-19 relief program.
The Dow Jones Industrial Average dipped into the red in the last hour of trading and finished down nearly 69 points, or 0.22%, at 30,991. It hit an intraday high at 31,223.
The S&P 500 was off 0.38%. The Nasdaq, which hit an intraday high at 13,220, dropped the gains and lost 0.12%.
The tech industry has had a rough day, with Apple (AAPL) – Get the report, Amazon (AMZN) – Get the report and Facebook (FB) – Get the report all ending.
The Labor Department reported that jobless claims rose to nearly one million last week as the coronavirus pandemic continued to push 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 one point, tough jobs like we saw (Thursday) may serve as a tinder for those calling for a correction, but the market seems to be of the view that the light at the end of the tunnel remains in sight, despite a difficult vaccination. deployment, ”said Mike Loewengart, Managing Director of Investment Strategy at E-Trade.
“Plus, a darker-than-expected jobs report translates into a greater likelihood of a full stimulus package, which perversely acts as a tailwind for the market.”
Biden’s advisers recently told congressional allies that they expected the relief package price to be around $ 2 trillion, CNN reported, citing two people briefed on the deliberations.
Biden is expected to announce his coronavirus relief plans on Thursday evening.
The proposal is expected to include significant direct payments to American families and significant state and local funding, including for the distribution of coronavirus vaccines, according to the report.
The benchmark 10-year Treasury yield rose to 1.092% on Thursday, near 10-month highs. Yields have risen recently amid expectations that the Biden administration would increase government spending, adding billions more 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 “notify the world” well in advance when it begins to phase out asset purchases . Talks of tapping have increased in recent times alongside discussions of increasing relief spending.
“We know we have to be very careful in communicating about asset purchases,” he said. “Now is not the time to talk about going out. I think this is another lesson from the global financial crisis, be careful not to get out too early.
Actions ended on Wednesday, shortly before the House voted to impeach President Donald Trump for inciting insurgency.
It was the second time Trump has been impeached during his administration, and comes just a week before he left office.
The House voted 232 to 197 to impeach Trump. Ten Republican members joined Democrats in voting to impeach the president.
It is still unclear when the Senate will hold a trial, although outgoing Majority Leader Mitch McConnell told fellow Republicans on Wednesday in a letter that he would not start until Trump expires on January 20. and the assumption of office of Biden.
Delta Airlines (OF) – Get the report posted a larger-than-expected loss in the fourth quarter, but expects the industry to recover this year as vaccine deployments accelerate and international travel restrictions are lifted later in the spring.
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