U.S. stocks climbed to record highs yesterday, as investor hope that Washington can deliver additional fiscal stimulus before the end of 2020 outweighed a dismal U.S. employment report. Congressional leaders on Wednesday neared a $900 million stimulus package that would include direct payments to individuals but would exclude liability protections for businesses and aid to state and local governments. In U.S. economic news, jobless claims unexpectedly rose last week to 885,000, the second consecutive increase and the highest level since September, as a surge in Covid-19 infections led to increasing restrictions on businesses. The U.S. dollar fell to a more than two-year low versus a basket of other currencies, as risk appetite increased on hopes for more U.S. economic stimulus and a post-Brexit trade deal. Gold rose to a one-month high as the dollar fell and the U.S. Federal Reserve (Fed) pledged Wednesday to funnel more cash and keep interest rates low. Futures surged 2.1 percent to $1,898.60 an ounce on the New York Mercantile Exchange. Oil rose to another nine-month high, on trader optimism about progress on a U.S. fiscal stimulus deal, strong Asian demand, and the weaker U.S. dollar. West Texas Intermediate (WTI) crude futures advanced 45 cents, or 1 percent, to $48.27 a barrel. The Dow Jones industrial average rose 148.83, or 0.5 percent, to 30,303.37. Twenty-one of the index's 30 components climbed, led by Johnson & Johnson, which surged 2.6 percent. Home Depot and Nike each gained 1.6 percent. Boeing led decliners, dropping more than 2 percent. The broader Standard & Poor's 500 index rose 21.31, or 0.6 percent, to 3,722.48. Real estate, materials, and healthcare were the best-performing sectors, rising more than 1 percent each. The technology-heavy Nasdaq composite index rose 106.56, or 0.8 percent, to 12,764.75. Netflix gained 1.5 percent, and Apple climbed 0.7 percent. Amazon declined 0.2 percent, Facebook lost 0.4 percent, and Google-parent Alphabet dropped 0.9 percent.
