But Wall Street remains hopeful that Washington will come through with more badly needed support for American workers and businesses after President-elect Joe Biden's inauguration. It's that simple."According to experts cited by the report, investors in the country are far more interested in the actual formal transition of power and the projected Democrat-controlled Congress than in the riots in Washington, DC".
Treasury yields zigzagged following the release of the weaker-than-expected jobs report, but they remain on an upward trend.
"With more stimulus coming, even if we do have a miss on claims, it's going to be a little bit less severe, because we know there's going to be a bigger back up for those who are recently unemployed", said Max Gokhman, head of asset allocation at Pacific Life Fund Advisors in Newport Beach, California.
Axi's Stephen Innes said that high amounts of liquidity, stimulus and high savings rates had created "the flawless conditions for speculation and asset price lift-off".
The Dow is up 222.92 points, or 0.7%.
Anticipation of more stimulus for the economy, increased USA government borrowing and perhaps inflation across the country have been pushing Treasury yields to levels not seen since early in the pandemic.
Stocks of smaller companies were stable. "You're going to need something to shore up those people".
Democratic challengers Raphael Warnock and Jon Ossoff were declared victors in Georgia's Senate runoff election, cementing a triad of Democratic control over the White House and both chambers of Congress. The Senate is barely Democratic.
The Democrats' narrow majority in the Senate may also limit Mr. Biden's ability to push measures such as higher corporate taxes and increased regulation, Mr. Monier added.
The Nasdaq composite, which is full of tech stocks, shed early gains as investors shifted from the winners of the stay-at-home economy of the pandemic toward companies whose profits would benefit most from a healthier economy.
The February gold contract was down US$78.20 at US$1,835.40 an ounce and the March copper contract was down 2.25 cents at about $3.67 a pound.
"The market is now looking past Trump and it's looking forward to a Biden presidency, more structure and stimulus", said Dennis Dick, a trader at Bright Trading LLC. The gains pushed the S&P 500 to its second consecutive weekly gain. The jump pushes Tesla's total market value past Facebook's, and it's now the fifth-largest stock in the S&P 500.
The prospect of another massive splurge in the world's biggest economy helped divert attention from soaring Covid infection and death rates that have forced governments to once again lock down as they try to quickly roll out vaccinations. Commerzbank fell 3% after it said that worsening market conditions are prompting the bank to write off about $1.84 billion in goodwill, and that it expects a negative risk result for 2020. The industrials sector rose 0.9%.
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