NEW YORK – US stocks came off record highs yesterday following new disagreements on an economic stimulus package.
Late Tuesday, the White House had put forward a fresh stimulus proposal of $916 billion (RM3.73 trillion), lifting hopes US lawmakers could pass a deal before the end of the month, when some of the last pandemic aid programs expire.
That helped the S&P 500 push higher off a record close as trading got underway and the Dow hit a new intraday record, but the rally quickly ran out of steam and all three major indices finished in the red.
The Dow closed 0.4% lower at 30,068.81, the NASDAQ ended 1.9% down at 12,338.95, and the S&P 500 closed 0.8% lower at 3,672.82.
“You have a tug of war between virus news and vaccine news and the tiebreaker has been the potential for a stimulus,” Art Hogan of National Holdings said.
When there's any bump in the road, the market deserves a breather and I think that's what happened today."
Leading Democrats meanwhile showed little enthusiasm for the White House plan. While the White House package includes new stimulus checks, they are half the amount of those sent out to Americans earlier this year, and the bill also has little money for additional unemployment benefits.
“An agreement doesn't seem likely in the near-term,” analyst David Madden said. – AFP, December 10, 2020
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