On Friday, all three key indices of Wall Street scaled higher to notch their new record closing highs as hopes of a larger pandemic stimulus bolstered further after the US President-elect Joe Biden had said his economic packages would be in trillions of dollars.
Aside from that, the latest rally in Wall Street came against the backdrop of a cascade of caustic fiscal data including a labour department statement that showed earlier in the day that a struggling US labour market had shrugged off jobs for the first time in eight months in December amid an increase in pandemic-led restrictions, while US weekly initial jobless claims data released a day earlier, had mirrored a muffled momentum in a US labour market festering over the recent weeks.
Nonetheless, investors appeared to be looking beyond the series of slandering fiscal data, as Dow, S&P 500 and Nasdaq, all had downplayed the perils of a US economy suffering a pandemic assault. However, late in the day, benchmark S&P 500 pulled back slightly from its session highs followed by a report that the Democratic West Virginia Senator Joe Manchin had opposed the concept of a larger pandemic check before confronting the global-scale public health concern, however, pared earlier losses after the President-elect Joe Biden had been quoted saying that his pandemic stimulus bill would be in trillions of dollars.
Wall St. rallies as Biden pledges to trillions of dollars in stimulus package
Citing statistics, in the day’s Wall Street closing bell, trade-sensitive Dow closed out the session 0.18 per cent higher to 31,097.97 and benchmark S&P 500 gained 0.55 per cent to 3,824.68, while leading the tally of the gains, tech-heavy Nasdaq was nudged 1.03 per cent higher to 13,201.98.
Meanwhile, referring to markets’ vulnerabilities on stimulus associated whispers, a senior market analyst at OANDA in New York, Ed Moya said, “It’s amazing how sensitive we are to the slightest tweaking of when and how big the stimulus will be.
Stocks are going to start to price in a bigger economic relief package from the Biden administration. That is going to continue to be the driver on equities”.