The S&P 500 returns from report highs as a consequence of doubts about main stimulus checks from Reuters
© Reuters. Raindrops hang on a Wall Street sign outside the New York Stock Exchange in New York
By Devik Jain and Medha Singh
(Reuters) – It pulled back slightly from a record high on Friday after Democratic Senator Joe Manchin declined major direct controls and threw cold water on possible further stimulus payments.
Manchin, a moderate Democrat from West Virginia, told the Washington Post in an interview that he would “absolutely not” support a new round of payments despite the fact that Democratic leaders demanded $ 2,000 checks.
Earlier in the day, the S&P 500 and Nasdaq hit record highs as hopes for more tax aid beat data showing the economy cut jobs in December for the first time in eight months.
“Part of the reason the market has rallied in the past few days is because we expect more momentum, not just in the short term, but also in the long term,” said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York.
“Manchin’s stance is against short-term incentives, but that could also have long-term effects. The Senate is hardly democratic. Manchin could certainly go the other way.”
Positive COVID-19 vaccine data and the expectation of a larger tax package and infrastructure spending in a democratically-led U.S. Congress have put the S&P 500 above 3,800 points for the first time and put all three major indices on the path to weekly gains.
Seven of the 11 major S&P sectors were down, with economy-related financials, materials and industrials that outperformed their peers and hit record levels this week falling more than 1%.
Market participants peeked past a report that Congressional Democrats were planning to impeach President Donald Trump on Monday after a violent crowd of Trump supporters stormed the U.S. Capitol.
At 2:03 p.m. ET, the value fell 150.64 points, or 0.49%, to 30,890.49, and the S&P 500 lost 5.63 points, or 0.15%, to 3,798.16.
Income rose 36.49 points, or 0.28%, to 13,103.96, aided by gains at Tesla (NASDAQ 🙂 Inc and Baidu Inc (NASDAQ :).
Electric car maker Tesla rose 6% and increased its market cap to over $ 800 billion for the first time.
US-listed Baidu shares rose 13% as it planned to start a company to manufacture intelligent electric vehicles, according to two sources familiar with the matter.
With a 1.5-to-1 ratio on the NYSE and a 1.6-to-1 ratio on the Nasdaq, declining issues were more numerous than proponents.
The S&P 500 made 83 new 52-week highs and no new low, while the Nasdaq made 543 new highs and 25 new lows.
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