Shares rose on Thursday after another surprise surge in early job claims, boosting confidence on Wall Street that congressional leaders would soon agree to a coronavirus aid package.
The Dow Jones Industrial Average rose 101 points, or 0.33%, to 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 on Thursday.
Some details of what will be included in the package have come out while Congress was making the final touches of the 900 900 billion relief plan.
Regarding the negotiations, people told Bloomberg that the draft plan includes payments to individuals of $ 600, weekly supplementary unemployment insurance payments and assistance to small businesses. That includes about 17 17 billion for airlines.
This package will not help state and local governments and litigation liability security, which will stick to previously negotiated issues.
Flinding U.S. Relief for the labor market may not come soon.
Jubilees claims jumped unexpectedly again last week as businesses continued to pay back rent amid the worst outbreak of the coronavirus epidemic so far.
The Labor Department reported Thursday that 885,000 Americans applied for unemployment benefits for the first time in the week ended Dec. 12, with 862,000 claims revised earlier in the week and the highest in early September. Voter economists were expecting a claim of 800,000 by Factset.
This number reflects the ongoing difficulties in the labor market, where the epidemic is affecting employer decisions to keep employees on payroll, even in the crucial holiday season.
Robert Frick, a corporate economist with the Navy Federal Credit Union, said that if Covid-19’s record-breaking unemployment claims were to continue, it would break with last week’s figures.
“The federal aid package will not come a day soon to reduce employment losses, reduce retail spending and drastically reduce other measures that have weakened in the last two months,” Frick added.
Federal Reserve Chairman Jerome Powell vowed on Wednesday that the central bank would continue to support the US economy.
The Fed said it would maintain the momentum of its bond-buying program, currently at ૨ 150 billion a month, and said its broader strategy would remain in place until “significant further progress” was made to meet its employment and inflation targets.
Powell said he expects the economy to recover at a healthy pace in the second half of 2021 as vaccines against coronavirus are widely distributed.
Of modernity (MRNA) – Get the report The coronavirus vaccine candidate will appear before the Food and Drug Administration’s advisory panel on Thursday. The full FDA will sign emergency use for the vaccine as early as Friday.
Earlier this week, FDA staff said the Moderna Covid-19 vaccine was “extremely effective” in preventing potentially fatal disease. Moderna said its vaccine candidate effectiveness rate is about 94%.
Street’s Best Stocks of the Year: Moderna’s No. 3
For the first time in history, Bitcoin was trading above 23,000 as investors and speculators flocked to the board.
The world’s largest digital currency has more than tripled by 2020. On Wednesday, it crossed $ 20,000 for the first time.
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