Stocks on Wall Street open higher after 3 days of losses

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Stocks moved slightly higher in early trading Friday, recovering some ground after three straight days of losses. Investors remain focused on the future of the COVID-stricken economy and the potential for more stimulus to fix it.

The S&P 500 index was up 0.3% as of 10 a.m. Eastern. The Dow Jones Industrial Average also rose 0.3%, and the Nasdaq climbed 0.5%. The Russell 2000 index of small company stocks was up 1.1%, a sign that investors were anticipating more economic growth and potentially higher inflation.

Wall Street continues to look to Washington for direction, as Democrats move forward with their $1.9 trillion stimulus plan to combat the coronavirus. Incremental moves were made this week, with the Biden administration signalling it would drop its call for a $15-an-hour minimum wage in this stimulus plan in order to get support from moderate Democratic senators.

Much of the recent economic data has shown the U.S. economy could benefit from additional stimulus. Wall Street got a weekly jobless claims report Thursday that showed 861,000 Americans filed for unemployment last week, a rise from the previous week and higher than Wall Street had forecast. The Federal Reserve, in the minutes from its January meeting, also laid out the case for why additional stimulus would be necessary and not cause the economy to overheat.

 

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