Wall St ends higher in renewed rally on hopes of further stimulus

The S&P 500 and Nasdaq scaled new highs on Friday as hopes of more stimulus from Washington were shaken by a senator’s comments but later bolstered after U.S. President-elect Joe Biden said his economic package will be in the trillions of dollars.

The latest rally in equities overcame labor market data early in the day that showed the U.S. economy shed jobs for the first time in eight months in December.

But late in the session, the S&P retreated slightly from a its most recent peak following a report that Democratic U.S. Senator Joe Manchin opposed bigger direct checks before addressing the coronavirus pandemic. The remarks threw cold water on investor hopes for further stimulus payments.