Wall Street Closed at Records As Stocks Gain on Vaccine, Stimulus Hopes

Wall Street
  • Investors propelled equity markets higher Friday, with US stocks finishing at all-time peaks as ongoing vaccine optimism and indications of progress on fresh US stimulus overshadowed fears over growing cases of coronavirus.
  • Even after government reports indicated that the job recovery stalled, the rally on Wall Street still arrived, as US employers gained only 245,000 new workers in November.
  • The soft employment report “is seen as a positive for stocks since it ought to incentivize Congress to pass a stimulus bill this year,” said Neil Wilson, chief market analyst at Markets.com.
  • Visit The Financial Today’s homepage for more stories.

NEW YORK — Investors propelled equity markets higher Friday, with US stocks finishing at all-time peaks as ongoing vaccine optimism and indications of progress on fresh US stimulus overshadowed fears over growing cases of coronavirus.

After European bourses had reported rises, all three big US stock indices ended at new highs.

Oil prices have climbed to nine-month highs after the petroleum exporters’ new supply agreement.

Even after government reports indicated that the job recovery stalled, the rally on Wall Street still arrived, as US employers gained only 245,000 new workers in November.

And even though the unemployment rate plummeted from 6.9 percent to 6.7 percent, it was attributed to Americans leaving the workforce, the lowest since the pandemic hit.

Stating that new cases of Covid-19 are “raging” in the US, Chris Low of FHN Financial cautioned that “job growth will be sluggish for the next three or four months, minimum.”

According to Johns Hopkins University, the United States documented more than 210,000 new cases in a 24-hour stretch through Thursday evening, and more than 2,900 deaths.

Still, Low said the first coronavirus vaccine might be authorized by the US as early as next week.

And experts said the poor jobs report offers an additional incentive for Congress to pass a new stimulus package, and attempts to work out a deal for further aid have been renewed by Senate Republican leader Mitch McConnell and House Speaker Nancy Pelosi.

President-elect Joe Biden reiterated the need for immediate support, saying, “if we don’t act now, the future will be very bleak. Americans need help, and they need it now.”

The soft employment report “is seen as a positive for stocks since it ought to incentivize Congress to pass a stimulus bill this year,” said Neil Wilson, chief market analyst at Markets.com.

Source: AFP | Image: Alex Proimos on Flickr under CC BY-NC 2.0

Total
0
Shares

Leave a Reply

Previous Post
Tokyo Stock Exchange

Asian Stocks Mixed As Virus Cases Cloud Vaccine Optimism

Next Post
US Capitol

COVID, Budget, Defense: US Congress Braces for Tough Week

Related Posts