US: Dow Jones, S&P, Nasdaq end at records, extending rally

[NEW YORK] Wall Street stocks surged to fresh records again on Thursday, shrugging off Wednesday's violent attack on the US Capitol in favour of optimism for a better economy in 2021.

The Dow Jones Industrial Average jumped 0.7 per cent to finish at 31,041.13, its first ever close above 31,000 points.

The broad-based S&P 500 gained 1.5 per cent to end at 3,803.79, while the tech-rich Nasdaq Composite Index jumped 2.6 per cent to 13,067.48.

All three indices finished at new all-time highs just over 12 hours after Congress finally was able to officially certify the election victory of President-elect Biden, who called the mob that stormed the Capitol and delayed debate "domestic terrorists."

"Clarity on the political front appeared to buoy sentiment, as the Democrats gained a slim majority in Congress following the Georgia runoff elections," Schwab analysts said, referring to the contests that gave Biden's party control of the Senate.

That raises chances the government will push through more stimulus to drive a stronger recovery, as vaccines rollouts offer hope the Covid-19 pandemic will finally be reined in.

But the economic damage remains stark, with layoffs continuing and applications for jobless benefits at staggering levels in the final month of 2020.

Investors will focus on the December jobs report due out Friday which economists warn could show only a small increase or even a decline in employment.

After markets closed, the Justice Department announced it had fined Boeing US$2.5 billion to settle criminal fraud charges over the 737 MAX, which was grounded for 20 months following two fatal crashes.

Prosecutors described Boeing's failings in withering terms, accusing the company of putting "profit over candor" and of engaging in a "half-truths" and a "cover up." Boeing CEO David Calhoun acknowledged the company "fell short" in its handling of the MAX.

The company's shares gained 0.8 per cent during the session but were down by that amount in after-hours trading.

AFP