US: Wall Street ends lower on fading stimulus prospects

[NEW YORK] US equities closed lower on Thursday, weighed down by the tech sector amid growing certainty Washington will not produce a new stimulus package before the election.

The bellwether Dow Jones Industrial Average dipped barely 0.1 per cent to end the trading session at 28,494.2, while the broad-based S&P 500 lost 0.2 per cent to close at 3,483.34.

The tech-rich Nasdaq Composite Index fell 0.5 per cent to 11,713.87.

Analysts said sentiment was dampened by Covid-19 fears as the virus surges in Europe, along with uncertainty ahead of the November 3 US presidential election.

But all three indices did recover by the close following sharper falls earlier in the day.

Markets got a bit of a boost after President Donald Trump signaled he favored a rescue package to help jobless workers and struggling businesses costing more than the current US$1.8 billion offer from the White House, but did not provide any details.

However, Treasury Secretary Steven Mnuchin repeated his view that a deal with congressional Democrats would be hard to get done before the election.

"We do need bipartisan support, we can't do this alone, so I will continue to negotiate until we can get a deal done," Mr Mnuchin said on CNBC.

Data released Thursday was mixed, with the Labor Department reporting a 53,000 rise in applications for unemployment benefits last week, which pushed jobless claims to their highest level since mid-August.

Regional manufacturing indices for New York and Philadelphia showed a continued recovery, albeit at differing speeds.

Alcoa shares dropped 5.4 per cent after the company warned of a likely decline in earnings in the fourth quarter, while drug store chain Walgreens Boots Alliance gained 4.8 per cent on better-than-expected earnings.

AFP