Stocks on Thursday sparked confidence on Wall Street as another surprise surge in initial jobless claims that congressional leaders would soon agree to a coronovirus aid package.
The Dow Jones Industrial Average was up 101 points or 0.33% at 30,255, the S&P 500 rose 0.36% and the Nasdaq rose 0.48%.
The S&P 500 and Tech-Heavy Nasdaq traded at record intraday highs in Thursday’s session.
While Congress was finishing touches of the $ 900 billion relief plan, some details of what would be included in the package have been revealed.
People briefed on the negotiations that Bloomberg said drafted the plan to include $ 600 in payments for individuals, $ 300 in supplemental unemployment insurance payments, and assistance for small businesses. It also includes about $ 17 billion for airlines.
The package excludes aid for state and local governments and litigation liability protection, which have held previous negotiations.
The relief may not be soon enough for the US labor market.
Claims for the unemployed unexpectedly rebounded last week as business continued to rise amid the worst surge to date in the coronovirus epidemic.
The Labor Department reported on Thursday that 885,000 Americans filed for jobless benefits for the first time in a week, ending on December 12, claiming a revised 862,000 a week earlier and the highest since early September. FactSet-provided economists expected claims of 800,000.
The numbers reflect ongoing troubles in the labor market, where epidemic employees continue to influence the decision to place employees on payroll, even during the critical holiday shopping season.
“If there was any doubt that record Kovid-19 cases were raising unemployment claims, they were dashed with the latest week’s numbers,” said Robert Frick, corporate economist at the Navy Federal Credit Union.
“The federal aid package may not even come one day too soon to reduce job losses, a decline in retail spending and has hosted a number of other measures over the past two months,” Frick said.
Federal Reserve President Jerome Powell said Wednesday that the central bank would continue to support the US economy.
The Fed said it would maintain the momentum of the bond buying program, currently $ 120 billion per month, and said that Housing would remain its comprehensive strategy as long as it met its employment and inflation targets “substantially.” No further progress “has been made.
Powell said he expects the economy to reverse at a healthy pace in the second half of 2021 as vaccines against coronaviruses are widely distributed.
Of moderna (mRNA) – Get Report The coronavirus vaccine candidate will go before an advisory panel to the Food and Drug Administration on Thursday. The full FDA can sign emergency use for the vaccine as early as Friday.
Earlier this week, FDA staff said Modern’s vaccine for Kovid-19 was “highly effective” in preventing a potentially fatal disease. Modern said its vaccine candidate has an efficacy rate of about 94%.
TheStreet’s Best Stock of the Year: Modern Is Number 3
Bitcoin traded above $ 23,000 for the first time in history as investors and speculators jumped on board.
The world’s largest digital currency has more than tripled during 2020. It crossed $ 20,000 for the first time on Wednesday.