US Market closes at all-time highs on more stimulus hopes

The US stocks scaled new highs on Friday, 08 January 2021, with major indices- S&P 500 index, the Dow Jones Industrial Average, and the technology-heavy Nasdaq Composite all settling at new record levels, amid expectations that the incoming Biden administration will pump more aid into the pandemic-ravaged economy. However, market gains capped after showed the U.S. economy shed jobs for the first time in eight months in December as the country buckled under the COVID-19 onslaught.

At the close of trade, the Dow Jones Industrial Average index advanced 56.84 points, or 0.18%, to 31,097.97. The S&P 500 index was up 20.89 points, or 0.55%, to 3,824.68. The tech-heavy Nasdaq Composite Index added 134.49 points, or 1.03%, to 13,201.98. For the week, the Nasdaq surged up by 2.4 percent, while the S&P 500 and the Dow jumped by 1.6 percent and 1.8 percent, respectively.

The markets benefited from optimism that a Democrat-controlled government will come through with more badly needed support for American workers and businesses following President-elect Joe Biden's inauguration. Investors are anticipating Washington will try to deliver more stimulus for the struggling economy with Democrats soon in control of the presidency, Senate and House.

Technology stocks and companies that rely on consumer spending helped lift the market, outweighing losses in financial, industrial and other sectors.

ECONOMIC NEWS: Labor Department report showed an unexpected decrease in U.S. employment in the month of December. The Labor Department said non-farm payroll employment fell by 140,000 jobs in December after climbing by an upwardly revised 336,000 jobs in November.

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