Left Menu
Development News Edition

US STOCKS-Dow, Nasdaq hit record highs as focus turns to Biden's stimulus plan

The Dow and the Nasdaq hit record highs on Thursday in anticipation of President-elect Joe Biden's pandemic aid proposal to jump-start a struggling economy after data highlighted weakening labor market conditions. The Labor Department's weekly jobless report showed the number of Americans filing for unemployment benefits increased more than expected last week, underscoring the impact of a resurgence in COVID-19 infections.

Reuters | Washington DC | Updated: 14-01-2021 21:23 IST | Created: 14-01-2021 21:19 IST
US STOCKS-Dow, Nasdaq hit record highs as focus turns to Biden's stimulus plan
Representative image Image Credit: Wikimedia Commons

The Dow and the Nasdaq hit record highs on Thursday in anticipation of President-elect Joe Biden's pandemic aid proposal to jump-start a struggling economy after data highlighted weakening labor market conditions.

The Labor Department's weekly jobless report showed the number of Americans filing for unemployment benefits increased more than expected last week, underscoring the impact of a resurgence in COVID-19 infections. However, the S&P 500 rose for the seventh time in nine sessions this year as investors count on Biden to unveil a stimulus plan on Thursday evening that could exceed $1.5 trillion.

"For a while investors have been looking forward to what the picture might be like once the vaccine is fully distributed and the worst parts of the pandemic over," said Rick Meckler, partner, Cherry Lane Investments, a family investment office in New Vernon, New Jersey. "There is a little bit of a fear of 'sell on the news' that when (stimulus) is actually introduced, it won't be as large as some people like or it's possible that market will start to look at how it's going to be paid for."

Among individual stocks, Delta Air Lines gained about 5% as Chief Executive Ed Bastian forecast 2021 to be "the year of recovery" after the coronavirus pandemic prompted its first annual loss in 11 years. The S&P 1500 airlines index added 3.4%.

Five of the 11 major S&P sectors rose in early trading with economy-linked energy, financial and industrials gaining the most. The domestically-focused small-cap Russell 2000 also hit an all-time high.

Analysts have said near-term political uncertainties in Washington, a relentless rise in coronavirus cases and a slower than expected rollout of vaccines could impede gains for equities in the short-term. Meanwhile, President Donald Trump became the first president in U.S. history to be impeached twice when the House voted 232-197 on Wednesday to charge him with inciting riots at the Capitol. The impeachment proceedings threaten to hang over the beginning of Biden's term.

At 10:44 a.m. ET, the Dow Jones Industrial Average rose 116.19 points, or 0.38% , to 31,178.17, the S&P 500 gained 11.29 points, or 0.30 %, to 3,821.13 and the Nasdaq Composite gained 81.07 points, or 0.62 %, to 13,210.89. U.S.-listed shares of Taiwan Semiconductor Manufacturing Co Ltd surged about 10% after posting its best-ever quarterly profit and raised revenue and capital spending estimates to record levels.

The Philadelphia semiconductor index jumped 2.3% to a record high. Attention is shifting to the earnings season with results from JPMorgan, Citigroup and Wells Fargo slated for Friday.

First-quarter and 2021 corporate guidance will be key for investors as new lockdowns threaten to push back a recovery in corporate earnings, according to investment banks. Advancing issues outnumbered decliners by a 3-to-1 ratio on the NYSE and by a 3-to-1 ratio on the Nasdaq.

The S&P 500 posted 37 new 52-week highs and no new low, while the Nasdaq recorded 383 new highs and three new lows.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


TRENDING

OPINION / BLOG / INTERVIEW

China: A savior for emerging markets or a poison pill?

... ...

Future of Urban Planning: Artificial Intelligence guiding the way

Advances in emerging technologies like Artificial Intelligence and Machine Learning can help us understand our cities better and derive useful insights from real-time data collected through automated models....

Videos

Latest News

China reports more than 100 new COVID cases as New Year holiday exodus looms

China reported more than 100 new COVID-19 cases for the sixth consecutive day, with rising infections in the northeast fuelling concerns of another national wave when hundreds of millions travel for the Chinese Lunar New Year holiday. Tough...

Four killed in road accident in Haryana

Four members of a family were killed when their car collided with a private bus on the Mahendergarh-Kanina road in Haryana, police said on Monday.The accident took place on Sunday near village Jhagroli in Mahendergarh, they said.The decease...

UK teachers, police, shop workers could get vaccine in phase 2, minister says

Key workers in Britain such as teachers, the police and shopworkers could move to the top of the list for a vaccine once all those over 50 have been offered a shot, the vaccine deployment minister said on Monday.Teachers, police officers, s...

Traceability on digital platforms may diminish users security, privacy: Internet Society

The debate around tracing the original creator of message on digital platforms is likely to continue in India and requirements to comply with the proposed idea may adversely impact users security and privacy, according to a whitepaper by US...

Give Feedback