Wall St. ebbs out as bleak job data offsets Biden’s $1.9 trillion stimulus proposal

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Wall St. ebbs out as bleak job data offsets Biden’s $1.9 trillion stimulus proposal

On Thursday, all three key indices of Wall Street had wrapped up the day in a downbeat texture with trade-sensitive Dow extending its losses for a second straight session in a row as optimisms over the US President-elect Joe Biden’s proposal of a whopping $1.9 trillion in fiscal packages, had largely been overshadowed by a bleaker-than-anticipated US weekly initial jobless claims data released earlier in the day.

In point of fact, US Labour Department said in a statement earlier in the day that the number of Americans filing for state unemployment benefits for the first time in their lives surged by 181,000 to a nearly four-month peak of 965,000, a level never seen since late-August, which eventually had raised an alarming bell over a constant stagnation in US labour market and spiralled the US money markets lower.

Apart from that, concerns over a rise in non-farm payroll for the first time in eight months in December had heightened up worries over further rise in jobless claims in January, pouring cold water over market participants’ morale, while a proposal of an eye-propping $1.9 trillion in fiscal aids raised fresh concerns over a soaring US budget deficit a day after US Treasury had unveiled in a statement that the US Government’s budget deficit had spiked to an atrocious $144 billion in December, a record-high ever for any month since the US Govt.

had begun to track down the data.

Wall Street falters on beaker-than-anticipated job data

In factuality, a slew of US stocks had witnessed a fecund feathering in the day’s market opening following reveal of Biden’s proposal of a $1.9 trillion in fresh fiscal aids, nonetheless, Wall Street had faced off an unprecedented U-turn after Labour Department’s weekly initial jobless claims data, while S&P 500 shed much of its steams in post-afternoon trading hours and wrapped up the day in red inks after spending most of the day in an affirmative territory.

Citing statistics, after hitting fresh record highs earlier in the session, Dow winded up the day down by 0.22 per cent to 30,991.52 and tech-heavy Nasdaq was nudged 0.12 per cent lower to 13,112.64, while benchmark S&P 500 shrugged off 0.38 per cent to close out the day at 3,795.54.

Meanwhile, addressing to a pandemic-driven forceful blow to an already perturbed US labour market later last year, a co-chief investment strategist at John Hancock Investment Management, Emily Roland said, “There’s a tug-of-war going on between the prospects for further fiscal stimulus, as a result of Democratic control of the Senate, and a jobs market that has a long way to go before it heals. You have these competing forces going on which are keeping markets range bound”.