Stocks on Wall Street opened lower on the heels of weekly initial jobless claims data that spiked by 137,000 to a seasonally adjusted 853,000, well above expectations for 725,000 and the highest level since mid-September, underscoring the need for fresh stimulus measures to support a flagging economy. — Reuters pic
But equities moved well off lows that saw the S&P 500 down as much as 0.75 per cent after US Treasury Secretary Steven Mnuchin said talks between Republican and Democratic senators on Covid-19 relief were making “a lot of progress” with more discussions expected in the day. The Dow Jones Industrial Average fell 69.55 points, or 0.23 per cent, to 29,999.26, the S&P 500 lost 4.72 points, or 0.13 per cent, to 3,668.1 and the Nasdaq Composite added 66.86 points, or 0.54 per cent, to 12,405.81.
The faltering labour market recovery and the recent surge in Covid-19 infections have piled pressure on policymakers to come up with another rescue package, as most of the government financial aid for Americans and businesses has dried up.