Reuters U.S. stocks rose on Friday with the SP 500 and the Nasdaq Composite index hitting record highs as a smallerthanexpected rebound in the labor market last month highlighted the need for more government aid to shore up the economy.
Stimulus talks, upbeat earnings and progress in vaccine rollouts have bolstered bets of a speedy economic recovery, setting the SP 500 and the Nasdaq on track for their biggest weekly percentage gains since the U.S. elections in early November.
The Labor Departments data showed job losses in manufacturing and construction, the two sectors that have been propping up the economy. Job losses in December were also deeper than initially thought.
U.S. President Joe Bidens drive to enact a 1.9 trillion coronavirus aid bill gained momentum on Friday with the U.S. House of Representatives set to vote on a budget plan that would allow the passage of the legislation in coming weeks without Republican support.
The upcoming package of stimulus is going to be big, said Alan Lancz, president of Alan B. Lancz Associates Inc, an investment advisory firm based in Toledo.
You have a situation where theres a lot of cash on sidelines and bonds have really underperformed, so thats helped some sectors that have really done poorly.
The Dow Jones Industrial Average rose 85.2 points, or 0.27, to 31,141.06, the SP 500 gained 14.66 points, or 0.38, to 3,886.4 and the Nasdaq Composite added 71.41 points, or 0.52, at 13,849.15.
The SP 500 technology sector…