Stocks trimmed early gains on Friday after the monthly employment report It showed that the United States lost jobs In December, investors continued to look to the prospect of additional fiscal stimulus.
The S&P 500 stock index added 0.4% while the heavy Nasdaq composite index advanced 0.8%. The Dow Jones Industrial Average fell 0.1%, or about 20 points, partly dragged down by the 3M conglomerate’s decline.
All three indexes closed at record levels on Thursday as investors focused on a possible increase in government spending after victories in Georgia’s run-off races that would give Democrats control of the US Senate.
Meanwhile, the rampant Coronavirus pandemic continues to weigh on the economy. A Labor Department report on Friday showed that the United States shed 140,000 jobs in December, ending seven months of job growth.
“So far, investors continue to look beyond the weakness of this report and other economic data as they are confident that more fiscal stimulus is coming,” said Michael Aaron, chief investment analyst at State Street Global Advisors. “And with the vaccine being distributed, this will only be temporary, and we will be able to exceed twice this number, hopefully in the not-too-distant future.”