The Dow Jones industrial average gained 113.47 points to close at 10,126.94. The Nasdaq finished up 62.48 points at 1,961.43, the first time since early September that the index has had a four-day winning streak. Stock market volatility, rising unemployment and worries about the economy are all factors that make people feel less inclined to spend, economists said. Most economists believe, however, that the economy still managed to grow during the first three months of 2001, but probably not by much. Given that the economy was booming in the first half of last year, the swiftness of the slowdown has jolted many Americans.
People see a bear market, layoff announcements, earnings warnings.
Another report provided fresh evidence of how the weak economy is taking its toll on the labor market. The Labor Department said new claims for state unemployment insurance rose last week by 9,000 to a seasonally adjusted 392,000, the highest level since March 30, 1996. Government officials said layoffs in the automobile industry, because of production cuts in the face of slumping demand, accounted for part of the unexpected rise. With employers' appetite for workers waning, economists expect the nation's unemployment rate, now at 4.3 percent, to rise to 4.5 percent or possibly higher in the coming months. Trying to stave off recession, the Federal Reserve slashed interest rates three times this year, totaling 1.5 percentage points.