Stock indexes end mixed as economic damage piles up
U.S. stock indexes closed mostly lower Thursday following more evidence that the pandemic is tightening its grip on the economy while Congress remains in a stalemate over how to do something about it.
The S&P 500 slipped 0.1% after flipping between gains and losses in the early going. The index is within 1% of its all-time high set on Tuesday. Some 60% of the companies in the S&P 500 fell, led by declines in industrial and communication services stocks. Those losses outweighed gains in energy, technology and financial companies.
Treasury yields fell following a report that showed 853,000 U.S. workers applied for unemployment benefits last week. That was more than economists expected and an acceleration from the prior week. It’s also the latest reminder that the pandemic is doing more damage to the economy in the near term, even if prospects are rising that a COVID-19 vaccine will get the economy healthy in the longer term.
Economists and investors have been imploring Congress to deliver more financial support in the meantime, to help carry the economy until it can stand on its own. After months of partisan bickering and no progress on Capitol Hill, momentum seemed to swing higher recently for a deal, but talks are still mired in deep uncertainty.
On Thursday, Treasury Secretary Steven Mnuchin reported headway in talks over President Donald Trump’s latest $900 billion-plus plan. But, Democrats and Republicans are still at odds over the size and scope of any deal.
“T here’s nothing really new there, except now you’ve got some softening economic data,” said Paul Christopher, head of global market strategy at Wells Fargo Investment Institute
The S& P 500 fell 4.72 points to 3,668.10. The Dow Jones Industrial Average dropped 69.55 points, or 0.2%, to 29,999.26. The Nasdaq composite rose 66.85 points, or 0.5%, to 12,405.81.
Small company stocks continued to do better than the broader market. The Russell 2000 climbed 20.56, or 1.1%, to 1,922.70, a record high.