US stocks hit record as Biden calls for more stimulus
Shares hit all-time highs after President-elect Joe Biden said he would expose details of trillions of dollars to further help revive the world’s largest economy.
The S&P 500 entered its fourth straight day of gains, led by retailers and real estate companies. The Nasdaq 100 outperformed, with Tesla Inc. surging for an 11th consecutive session. Meanwhile, the KBW Bank Index halted a rally that pushed the gauge up by more than 10% in three days. The miners joined in a sale of gold and silver.
In a week marked by a siege on the U.S. Capitol and a Democratic sweep of Congress, all major stock indexes set record highs as investors focused on the prospect of increased tax assistance. Biden appealed for more help – including US $ 2,000 stimulus checks – after a grim jobs report in December. The 140,000 drop in the wage bill highlighted just how much more the surge in coronavirus infections is weighing down on parts of the economy.
“Biden was talking about more stimulus,” said Jonathan Boyar, chief executive of BoyarValue. “The sooner we see the two sides acting together constructively, the better.”
House Speaker Nancy Pelosi said the country’s top military officer has assured his safeguards are in place in case President Donald Trump seeks to launch a nuclear strike – something he has the sole power to make. Pelosi and Senate Democratic Leader Chuck Schumer are calling on Vice President Mike Pence to invoke the 25th Amendment to have the cabinet remove Trump from office for cheering on the mob that stormed the U.S. Capitol on Wednesday.
Meanwhile, Federal Reserve Vice Chairman Richard Clarida has said he does not expect the central bank to start cutting asset purchases this year despite an expected strengthening in the economy. as the pandemic subsides. A few policymakers, including Chicago Fed Chairman Charles Evans and Atlanta’s Raphael Bostic, said this week they could support the reduction in the pace of purchases by year-end if the economy bounces back. enough.
Here are some of the main movements in the markets:
- The S&P 500 gained about 0.5% at 4 p.m. New York time.
- The Stoxx Europe 600 index rose 0.7%.
- The MSCI Asia Pacific Index gained 2 percent.
- The Bloomberg Dollar Spot Index gained 0.1 percent.
- The euro fell 0.4 percent to US $ 1.2225.
- The Japanese yen depreciated 0.1 percent to 103.95 per dollar.
- The yield on 10-year Treasuries climbed four basis points to 1.12 percent.
- Germany’s 10-year yield rose less than a basis point to -0.52 percent.
- Britain’s 10-year yield rose less than a basis point to 0.288 percent.
- West Texas Intermediate crude climbed 3.5 percent to US $ 52.60 a barrel.
- Gold fell 3.5% to US $ 1,847.89 an ounce.
– With the help of Sunil Jagtiani, Cormac Mullen, Yakob Peterseil, Robert Brand, Claire Ballentine and Vildana Hajric.