Dow Rallies 200 Points on Revived Stimulus Hopes
Wall Street kicks off fourth quarter on a positive note as investors continue to monitor stimulus talks. | Image: Spencer Platt/Getty Images/AFP
- The Dow Jones Industrial Average rose by as much as 260 points on Thursday.
- Investors are still hopeful that a new stimulus bill is in the works, even after Senate Majority Leader Mitch McConnell indicated that Democrats and Republicans are still far apart on a new deal.
- Jobless claims hold above 800,000 for the fifth straight week, reflecting a tepid labor market recovery.
The Dow and broader U.S. stock market traded higher on Thursday, as investors remained cautiously optimistic that lawmakers were progressing towards a new coronavirus stimulus bill.
Dow, S&P 500, Nasdaq Rally
All of Wall Street’s major indexes opened higher on Thursday, mirroring a positive pre-market session for stock futures. The Dow Jones Industrial Average rose by as much as 260 points before paring gains.
Dow blue-chips Microsoft, American Express, and Goldman Sachs were the top performers.
The broad S&P 500 Index of large-cap stocks gained 0.7%, with ten of 11 primary sectors reporting gains. The S&P 500’s consumer discretionary index led the advance , followed closely by information technology and communication services.
Rising tech stocks pushed the Nasdaq Composite Index higher. The tech-heavy index rose 1% on Thursday.
Investors remain cautiously optimistic about a new stimulus deal after Treasury Secretary Steven Mnuchin said Republicans are working on a $1.5 trillion relief package to counter the Democrats’ $2.2 trillion proposal. Watch the video below:
Jobless Claims Hold Steady; Consumer Data Mixed
On the data front, U.S. jobless claims held above 800,000 for a fifth consecutive week, highlighting the fragile nature of the recovery.
The number of Americans filing for first-time unemployment benefits declined by 36,000 to a seasonally adjusted 837,000 for the week ended Sept. 26, the Department of Labor reported Thursday . Continuing claims fell to 11.767 million for the week ended Sept. 19, down from 12.747 million.
On Wednesday, payroll processor ADP reported a net increase of 749,000 private-sector jobs in September, much higher than expected. The Labor Department will release the official September jobs report on Friday. Watch the video below:
In a separate report on Thursday, the Commerce Department reported that U.S. personal sending rose 1% in August, but that personal income fell 2.7%. August incomes were under pressure because of a reduction in government aid for unemployed workers .
