Stocks closed slightly higher on Christmas Eve, as investors went into the holiday weekend not bothered by President Donald Trump’s threat not to sign a major economic stimulus package approved by Congress this week.

Trading was extremely light in the abbreviated session ahead of the Christmas holiday. Trading on the New York Stock Exchange and the Nasdaq ended at 1 p.m. ET instead of the usual 4 p.m. ET. Volume was a less than half of a typical trading day.

The S&P 500 index closed up 13.05 points, or 0.4%, to 3703.06. Despite the gains, the index ended the week down 0.2%. Relatively safe investments like utilities and real estate were among the biggest gainers, while energy stocks fell.

The Dow Jones Industrial Average rose 70.04 points, or 0.2%, to 30,199.87 and the Nasdaq composite rose 33.62 points, or 0.3%, to 12,804.73.

Investors remain focused on Washington, where Democrats in Congress are expected to try to make alterations to the $900 billion COVID stimulus bill that President Trump has threatened to veto. Trump has asked for higher individual payments to Americans, something Democrats support but which is unlikely to get a vote in the Republican-held Senate.

The hope has been that Trump will back away from his veto threat and the stimulus package might tide the economy over until widespread vaccinations can help the world begin to return to normal.

Meanwhile the U.S. economy continues to deteriorate under widespread coronavirus outbreaks, infections and hospitalizations. The Labor Department said fewer U.S. workers filed for unemployment benefits last week. The number is still incredibly high compared with before the pandemic, but it was better than economists were expecting.

Other reports were grimmer. Consumers pulled back on their spending by more last month than economists expected, mainly because of a drop in income.

“Despite the churning of the Washington D.C. pond by vetoes, new votes, and overrides, Wall Street clearly believes something positive will float to the top of the barrel when the churning stops," Jeffrey Halley of Oanda said in a commentary to investors.

___

AP Business Writers Stan Choe, Alex Veiga, and Joe McDonald contributed.

Updated on December 24, 2020, at 2:06 p.m. ET.

Share:
More In Business
Starbucks’ Change Flushes Out a Debate Over Public Restroom Access
Starbucks’ decision to restrict its restrooms to paying customers has flushed out a wider problem: a patchwork of restroom use policies that varies by state and city. Starbucks announced last week a new code of conduct that says people need to make a purchase if they want to hang out or use the restroom. The coffee chain's policy change for bathroom privileges has left Americans confused and divided over who gets to go and when. The American Restroom Association, a public toilet advocacy group, was among the critics. Rules about restroom access in restaurants vary by state, city and county. The National Retail Federation says private businesses have a right to limit restroom use.
Trump Highlights Partnership Investing $500 Billion in AI
President Donald Trump is talking up a joint venture investing up to $500 billion for infrastructure tied to artificial intelligence by a new partnership formed by OpenAI, Oracle and SoftBank. The new entity, Stargate, will start building out data centers and the electricity generation needed for the further development of the fast-evolving AI in Texas, according to the White House. The initial investment is expected to be $100 billion and could reach five times that sum. While Trump has seized on similar announcements to show that his presidency is boosting the economy, there were already expectations of a massive buildout of data centers and electricity plants needed for the development of AI.
Load More