US Stocks eke out gains to close at a record

The US stocks were mixed on Thursday, 21 January 2021, with major indices- S&P 500 index and the technology-heavy Nasdaq Composite managed to eke out a gain to close at a record on anticipation that more fiscal spending will revive economic growth and bolster corporate earnings. However, market gains were capped amid some uncertainty about the near-term outlook for the markets following the run to record highs.

At the close of trade, the Dow Jones Industrial Average index fell 12.37 points, or 0.04%, to 31,176.01. The S&P 500 index added 1.22 points, or 0.03%, to 3,853.07. The tech-heavy Nasdaq Composite Index rose 73.67 points, or 0.55%, to 13,530.92.

U.S. equity markets hovered around record highs as traders expressed some uncertainty about the near-term outlook for the markets following the run to record highs. Meanwhile, prospects of greater fiscal aid under new President Joe Biden to tackle the economic damage from the COVID-19 pandemic and better strategies under Biden for vaccinating Americans at a more rapid clip helped to prop up the markets.

Biden has revealed new details of his plan to tackle the pandemic, which includes providing more state and local funding to accelerate the vaccine rollout and using the Defense Production Act to increase production of personal protective equipment.

Investors also remain focused on the 46th president's proposed $1.9 trillion pandemic relief package, a day after he took office. It is unclear that he will be able to get his bill through Congress in its current form without amendments.

ECONOMIC NEWS: The Labor Department released a report showing initial jobless claims fell to 900,000 in the week ended January 16th, a decrease of 26,000 from the previous week's revised level of 926,000.

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