U.S. indices limited growth earlier in Thursday’s session and ended with a slight jump as hopes for more fiscal stimulus evaporated, CNBC reported. The Dow Jones Industrial Average added 35.20 points to its value and gained 27,816.90 points. The broader S&P 500 index rose 0.5 percent to a level of 3,380.80 points, while the Nasdaq Composite advanced 1.4 percent to 11,326.51 points.
The benchmark 30 companies and the S&P 500 briefly found themselves in negative territory after the office of House majority leader Stanley Hoyer sent a message that the House was expected to vote on the Democrats’ stimulus package on Thursday. Traders had hoped that congressmen would continue to delay the vote, which would be a sign of progress with Republicans on a bipartisan package.
The market has been bolstered by hopes that, despite public hanging, congressmen will eventually come to an agreement.
Technology stocks, which can perform well without new incentives, have provided some support in the broader market, with Amazon, Microsoft, Alphabet, and Facebook all up at least 1%, and Netflix’s share price up 5.5%. The House, which was aiming to pass the $2.2-million Democratic bill in 2012, said it would not pass the bill.
On Wednesday, it postponed a vote to give House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin more time to agree on a bipartisan plan. Pelosi and Mnuchin had a phone conversation Thursday after they failed to reach a deal at their meeting Wednesday. “The two discussed further clarifications on quantities and language, but the distance in key areas remains.
Their conversation will continue this afternoon,” a Pelosi spokesman said. Mixed economic data also limited Wall Street growth. U.S. industrial production slowed in September as the Order Managers Index fell to 55.4 points from 56 points in August, according to data from the Institute for Supply Management.
Data on applications for unemployment benefits proved to be better than expected.
The Labor Department reported that aid applications submitted for the first time reached 837,000. 26, while economists surveyed by the Dow Jones industrial average had expected a total of 850,000.
Applications. In bond markets, yields on 10-year and 30-year U.S. Treasuries rose slightly to a level of 0.679% and 1.455%, respectively. On the currency markets, the dollar index, which tracks the performance of U.S. money against a basket of six major currencies, fell 0.17 percent to 93.73 points.
The euro 0.22% to $1.174 and the pound 0.24% to $1.289. Against the yen, U.S. treasuries added 0.09 percent to their value to 105.55 yen per dollar. In commodity markets, the price of oil fell about 4 percent on Thursday as the world’s rising number of coronavirus cases undermined demand prospects, and an increase in OPEC output last month also put prices under pressure. Futures on the North Sea international benchmark Brent fell $1.52 to $40.78 a barrel. U.S. crude oil contract WTI fell $1.51 to $38.71 a barrel. U.S. gold futures were up 1.1 percent to $1,916.30 a troy, staying firmly above the $1,900 threshold thanks to hopes of new stimulus from the U.S. economy and a weak dollar.