S&P 500, Nasdaq hit records as weak jobs report boosts chances of $1.9 trillion stimulus package

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  • US stocks gained on Friday after the US Senate approved a budget measure that will enable the passage of a $1.9 trillion stimulus bill.
  • The move from the US Senate came hours before the January US jobs report missed expectations.
  • Also supporting stocks is Johnson & Johnson submission of its single-dose COVID-19 vaccine to the FDA for emergency use authorization.
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US stocks jumped on Friday after the US Senate approved a budget measure that will enable the passage of a $1.9 trillion stimulus bill without Republican support.

The vote in the US senate, in which Vice President Kamala Harris cast the tie-breaking vote, came hours before the January jobs report missed analyst estimates.

The US added just 49,000 jobs in January, well below the estimate for 105,000 new jobs. However, the unemployment rate continued to decline, falling to 6.3% from 6.7%.

Here’s where US indexes stood after the 9:30 a.m. ET open on Friday:

Read more: Market wizard Michael Kean has averaged a 29% annual compounded return since starting his company 10 years ago. He shares his unique stock-picking strategy and 4 pieces of advice for anyone who wants to become a trader.

Also supporting stocks on Friday was Johnson and Johnson’s submission of its single-dose COVID-19 vaccine data to the FDA for emergency use authorization. The FDA could approve the vaccine in a matter of weeks, and Johnson and Johnson said it would supply the US with 100 million doses by the Summer.

GameStop and AMC Entertainment staged a small bounce on Friday after Robinhood removed all buying restrictions on the volatile stocks that staged a short-squeeze last week. 

Shares of Pinterest surged as much as 11% on Friday after the company reported earnings that beat analyst expectations. The social media platform said it added 100 million users in 2020.

The strong demand for Peloton bikes has led to extensive wait times for new customers, and the stock fell 6% after the company said it would invest $100 million to help shrink long wait times to more acceptable levels.

Oil prices rose. West Texas Intermediate crude jumped as much as 1.42%, to $57.04 per barrel. Brent crude, oil’s international benchmark, gained 1.27%, to $59.59 per barrel, at intraday highs.

Gold rose 0.34%, to $1,796.70 per ounce.

Read more: Investors are flocking to trade Dogecoin and other hot digital tokens on Voyager, a platform with no Robinhood-style restrictions. Its CEO says Bitcoin will hit $100,000 this year – and shares 3 other cryptocurrencies to watch.

Read the original article on Business Insider