The NASDAQ and Dow Jones both hit new highs on Thursday as it was reported that President-elect Joe Biden will make a pledge to jump start the U.S. economy with further stimulus.
It has been reported that the incoming President will make a televised speech addressing the economic downturn and laying out his plans to revive activity.
According to those familiar with the proposal, the stimulus package will be around $1.5 trillion and include a commitment for $1,400 stimulus checks for Americans impacted by the pandemic.
As of writing the Dow Jones and NASDAQ were both up close to 0.08% and 0.23%, respectively on the news.
U.S. Initial Jobless Claims hit 5-month high
Data released today showed that the Initial Jobless Claims in the United States rose more than expected, as the COVID-19 continues to impact the Labour market.
The number of Americans seeking unemployment benefits increased by 181,000 to a total 965,000 for the week which ended January 9th.
These figures see claims reaching their highest level since towards the end of August. Many had expected this week’s figures to come in at 795,000, however with 140,000 jobs lost last month, many Americans had been forced to seek benefits to continue to support themselves.
As a result of the rise, the benchmark S&P 500 rose 0.08%, in line with the Dow and NASDAQ.
FTSE 100 gains despite increasing virus deaths
The new strain of COVID-19 has seen not only infections rise, but also deaths hitting new highs in the United Kingdom.
It was reported that close to 1,564 people died yesterday, which is the highest the death toll has hit since the beginning of the pandemic almost a year ago.
As a result, Boris Johnson continues to remain apprehensive about easing lockdown restrictions, with the entire country being told to stay at home.
Despite this news, London’s FTSE 100 still managed to rally after several days of selloffs ending the day up 0.84% at 6,801.96.
Quote of the day – “Dangers of watching every tick are twofold: overtrading and increased chances of prematurely liquidating good positions.”Jack Schwagger
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Senior Market Analyst