Markets rise ahead of Biden proposal, despite jobless spike

Stock markets opened to gains Thursday morning despite an unexpected spike in initial jobless claims, which at 965,000 reached their highest level since August.

The Dow Jones Industrial Average opened up 105 points, or 0.3 percent, while the S&P 500 rose 8 points, or 0.2 percent.

The 25 percent spike in jobless claims alarmed economists, who were expecting weekly claims to come in at around 800,000. It is the latest indication that the economic recovery has stalled amid the fierce spread of COVID-19, which has reached unsettling new highs following the holidays.

Markets are watching President-elect Joe Biden, who is expected to unveil his proposal for the next round of COVID-19 relief Thursday evening.

The proposal, which he said would be “in the trillions,” is expected to include another round of stimulus checks, extend unemployment, fund state and local governments and up the vaccination effort.

Biden also said he would include plans for infrastructure spending in the proposal, though it remains unclear if he plans to pass that piece separately.