Stocks fell on Friday as President-elect Joe Biden unveiled a $ 1.9 trillion relief package from Covid-19, banks fell after the start of the earnings season and US retail sales were worse than expected.
The Dow Jones Industrial Average slipped 281 points, or 0.91%, to 30,709, the S&P 500 index fell 1.01% and the Nasdaq fell 1.11%.
BidenUS bailout plan“Includes $ 1,400 checks for individuals, in addition to the $ 600 in the most recent relief bill. Other elements of the plan include extending supplemental unemployment payments and stopping evictions and foreclosures until September.”
The president-elect’s plan also provides funds to deploy vaccines to help fight the coronavirus pandemic that, as of Thursday, has killed nearly 389,000 Americans.
The size of the aid package, plus the possibility of a tax increase, worried many on Wall Street that Biden might not have congressional support for his proposals.
“To some extent, much of this optimism has been priced in, but the huge numbers also called for some reflection as to whether the necessary bipartisan support would be met for such a huge amount,” said Jingy Pan, a Singapore market strategist for IG. .
C. B. Morgan Chase, The largest US bank, posted much stronger-than-expected profits for the fourth quarter as investment banking profits rose and the company booked $ 1.9 billion in previous credit allocations.
“While positive developments in vaccines and stimulus contributed to the release of these reserves during this quarter, our credit reserves of more than $ 30 billion continue to reflect great economic uncertainty in the near term and will allow us to withstand an economic environment that is much worse than the current underlying expectations of most economists. CEO Jimmy Dimon said in a statement.
The US Commerce Department said on Friday that US retail sales fell for the second consecutive month in December, as consumers retreated from their holiday spending amid mounting job losses.