Shares plummeted on Friday as President-Elect Joe Biden unveiled the $ 1.9 trillion Kovid-19 relief package, with banks’ earnings stalled during the season and U.S. retail sales deteriorating more than expected.
The Dow Jones Industrial Average fell 359 points, or 1.16%, to 30,632, down 1.1% on the S&P 500, and down 1.06% on the Nasdaq. The stock declined in Thursday trading. The Dow and Nasdaq set intraday record highs during the session.
Biden’s “American Rescue Plan” includes $ 1,400 checks for individuals on top of the $ 600 provided in the final relief bill. Other elements of the plan include supplemental unemployment payments and a moratorium on expulsion and foreclosure through September.
The presidential-election plan also provides funding for the deployment of a vaccine to help fight the coronavirus epidemic that on Thursday killed approximately 389,000 Americans.
The size of the aid package, as well as the possibility of a tax increase, many Biden-related Wall Street parties may not win support in Congress with their proposals.
“To some extent, this optimism had most of the value, but the huge figures also invited some contemplation as to whether the necessary bipartisan support for this huge sum would be put into practice,” said Jingi Pan, a Singapore-based industrialist for IG . .
JP Morgan Chase shares ()Jpm) – Get Report, Wells Fargo ()Wfc) – Get Report And citigroup ()C) – Get Report The slowdown came on Friday after big banks reported fourth-quarter earnings.
JP Morgan Chase, the largest US bank, posted a stronger than expected fourth quarter growth in investment banking profit and the company reported a $ 1.9 billion profit from its first credit provisions.
“While positive vaccine and stimulus growth has contributed to this quarter, our debt reserves of more than $ 30 billion this quarter continue to reflect significant economic uncertainty and far exceed current base forecasts by most economists.” Will allow it to cope with a bad economic environment, ”CEO Jamie Dimon said in a statement.
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US retail sales remained weak for the second consecutive month in December, the Commerce Department said on Friday, as consumers withdrew their holiday expenses amid an epidemic-causing job loss.