Stocks slipped from record highs in volatile trading on Friday as lawmakers struggled to bridge differences on additional coronavirus stimulus measures.
The Dow Jones Industrials recovered from their lows of the morning, but were still negative 124.32 points from Thursday’s all-time highs to 30,179.05. Still, the 30-stock index gained on the week more than 132 points, or 0.4%.
The S&P 500 removed 13.07 points to 3,709.41. Despite falling off its all-time highs, the S&P nearly 46 points over the last five sessions, or 1.25%.
The NASDAQ retreated 9.11 points from Thursday’s record closing high, to 12,755.64. On the week, the gain was an astounding 378 points, or 3.05%.
The stock market experienced massive volume on Friday as Tesla’s historic entry into the S&P 500 will be based on prices at the close. There was a rush of activity into the final bell and the S&P 500 will begin trading with Tesla as a member on Monday.
With a market capitalization of more than $600 billion after a 700% rally this year, the electric carmaker will be joining as the seventh-largest company in the index.
Tesla is being added to the benchmark in one fell swoop, marking the largest rebalancing of the S&P 500 in history. It’s estimated that passive funds tracking the S&P 500 needed to buy more than $85 billion of Tesla, while selling $85 billion of the rest of the index to make room for it.
Shares of Tesla rose to hit an all-time high on Friday in volatile trading. More than 180 million shares of Tesla changed hands, quadrupling the 30-day average volume.
Senate Majority Leader Mitch McConnell said Friday that the negotiations ‘remain productive. In fact, I am even more optimistic now than I was last night that a bipartisan, bicameral framework for a major rescue package is very close at hand,” he added
House Majority Leader Steny Hoyer said in the afternoon that the chamber would go into a recess until 5 p.m. while congressional leaders try to get a “clearer picture” of how to move forward. He told representatives to keep Friday night, Saturday and Sunday free.
Last-minute disputes preventing Congress from passing a relief deal include direct payments, small business loans and a boost to unemployment insurance.
As the market closed, Congress was trying to approve a measure to keep the government running for two more days.
Prices for the 10-Year Treasury were lowering, raising yields to 0.95% from Thursday’s 0.93%. Treasury prices and yields move in opposite directions.
Oil prices improved 69 cents to $49.05 U.S. a barrel.
Gold prices backpedaled $4.30 to $1,886.10.