Stocks slip, dollar gains as concerns remain over stimulus talks
Global stock indexes eased and the dollar rose on Friday amid continued concerns over the timing of more U.S. economic stimulus.
The S&P 500 and Nasdaq ended lower, while the Dow closed up slightly. All three indexes registered declines for the week.
Rising coronavirus deaths are causing fresh business restrictions in many U.S. states and increasing layoffs, making investors anxious to hear whether more fiscal relief is coming.
House of Representatives Speaker Nancy Pelosi on Thursday raised the possibility of stimulus negotiations dragging on through Christmas.
“Investors are wondering what is it that Congress needs to hear before they decide to act … their focus is more on politics than it is on the American economy,” said CFRA Chief Investment Strategist Sam Stovall.
The U.S. Food and Drug Administration is expected to issue an emergency use authorization for Pfizer Inc’s COVID-19 vaccine later in the day, the New York Times reported.
The Dow Jones Industrial Average rose 47.11 points, or 0.16%, to 30,046.37, the S&P 500 lost 4.64 points, or 0.13%, to 3,663.46 and the Nasdaq Composite dropped 27.94 points, or 0.23%, to 12,377.87.
The pan-European STOXX 600 index closed down 0.8% and MSCI’s gauge of stocks across the globe shed 0.19%. The MSCI index also was down for the week.
Still, recent U.S. initial public offerings suggested investors were generally upbeat on equities, even as jobs data pointed to U.S. economic weakness.
The dollar rose with safe-haven buying as investors’ risk appetite soured. The dollar index was last up 0.2%.
Sterling slipped as bets on further volatility in the currency grew over the increasing likelihood of a disorderly Brexit. Sterling was last trading at $1.3222, down 0.53% on the day.
Britain is likely to complete its journey out of the European Union in three weeks without a trade deal, British Prime Minister Boris Johnson and European Commission chief Ursula von der Leyen said on Friday.
U.S. Treasury yields were lower across maturities as complications in stimulus negotiations increased demand for the safe-haven securities.
Benchmark 10-year notes last rose 4/32 in price to yield 0.8948%, from 0.908% late on Thursday.
Oil prices were lower, as demand worries due to new virus-related restrictions grew. Brent futures fell 28 cents to settle at $49.97 a barrel, while U.S. crude fell 21 cents to settle at $46.57.
Spot gold prices were slightly higher.
