Wall St falls due to stagnation in economic rebound, deadlock in stimulus

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Wall St falls due to stagnation in economic rebound, deadlock in stimulus




Illustrative file photo of the facade of the New York Stock Exchange


© Reuters/BRENDAN MCDERMID
Illustrative file photo of the facade of the New York Stock Exchange


Por Medha Singh y Shivani Kumaresan

Oct 15 (Reuters) – US stocks fell on Thursday as an unexpected spike in weekly jobless claims compounded fears of a stagnation in the economic recovery, a day after the Treasury secretary dashed hopes for more. tax aid before the elections.

* At 1342 GMT, the Dow Jones Industrial Average was down 280.91 points, or 0.99%, to 28,233.09. The S&P 500 fell 34.40 points, or 0.99%, to 3,454.27 units and the Nasdaq Composite was down 128.91 points, or 1.10%, to 11,639.82 units.

* Initial claims for jobless assistance totaled 898,000 seasonally adjusted for the week to Oct. 10, up from 845,000 in the prior period, the Labor Department said Thursday. Economists polled by Reuters had forecast 825,000 requests in the past week.

* Another report showed that manufacturing activity in New York State fell more than expected in October.

* Expectations of another round of fiscal aid fueled a rally on Wall Street. Earlier this week the S&P 500 and the Nasdaq were at 2% of their all-time highs at the end of September 2.

* With less than 20 days left for the presidential elections in the United States, President Donald Trump and Democratic challenger Joe Biden will have simultaneous public events instead of a second debate, which was canceled after the president refused to participate in a confrontation virtual.

* The market’s attention is also on the quarterly earnings results of US firms. The expectation is for an improvement in third quarter earnings to a 18.9% drop from a forecast of a 25.0% decline on July 1, according to Refinitiv IBES data.

(Reported by Medha Singh and Shivani Kumaresan in Bengaluru; Edited in Spanish by Janisse Huambachano)

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