The Labor Department's weekly unemployment claims jumped to 965,000 for the week ended Jan.9, marking the report's highest level since August as the coronavirus pandemic continues to harm business activity. The previous week's claims were revised to 784,000. Continuing jobless claims also unexpectedly rose to a one-month high of 5.271 million.

Stocks pared gains and ended lower on Thursday, with investors awaiting the release President-elect Joe Biden's economic stimulus plan amid weaker-than-expect unemployment claims and a still surging global coronavirus outbreak.

However, the reading for initial jobless claims did not harm major benchmarks in early trading, as investors were betting on additional stimulus coming in the near term and a hurting labor department only increases the likelihood of more Congressional economic relief.

The Labor Department's weekly unemployment claims jumped to 965,000 for the week ended Jan.9, marking the report's highest level since August as the coronavirus pandemic continues to harm business activity. The previous week's claims were revised to 784,000. Continuing jobless claims also unexpectedly rose to a one-month high of 5.271 million.

Stocks slipped lower in afternoon trading following comments made by Federal Reserve Chairman Jerome Powell stating that the central bank does not intend to raise interest rates at any time in its current outlook, keeping monetary policy easy for the foreseeable future.

However, the reading for initial jobless claims did not harm major benchmarks in early trading, as investors were betting on additional stimulus coming in the near term and a hurting labor department only increases the likelihood of more Congressional economic relief.

In Washington, the House of Representatives voted late Wednesday to impeach President Donald Trump for a second time, making him the first U.S. president to be impeached twice. Senate Majority Leader Mitch McConnell stated that he will not call back members of the Senate early before Jan. 19 to hold the impeachment trial, suggesting that Trump will complete his term on Jan. 20. However, the trials could continue to run after Trump leaves office, which could harm Biden's immediate stimulus plans.

Stocks slipped lower in afternoon trading following comments made by Federal Reserve Chairman Jerome Powell stating that the central bank does not intend to raise interest rates at any time in its current outlook, keeping monetary policy easy for the foreseeable future.

Here's how the market settled on Thursday:

In Washington, the House of Representatives voted late Wednesday to impeach President Donald Trump for a second time, making him the first U.S. president to be impeached twice. Senate Majority Leader Mitch McConnell stated that he will not call back members of the Senate early before Jan. 19 to hold the impeachment trial, suggesting that Trump will complete his term on Jan. 20. However, the trials could continue to run after Trump leaves office, which could harm Biden's immediate stimulus plans.

S&P 500 Index (SPY  ): -0.38% or -14.30 points to 3,795.54

Here's how the market settled on Thursday:

Dow Jones Industrial Average (DIA  ): -0.22% or -68.95 points to 30,991.52

Nasdaq Composite Index (QQQ  ): -0.12% or -16.31 points to 13,112.64

S&P 500 Index (SPY  ): -0.38% or -14.30 points to 3,795.54

For Stocks, Virgin Galactic (SPCE  ) and Maxar Technologies (MAXR  ) both soared over 19% on news that Cathie Wood's Ark Invest is launching a space-exploration exchange-traded fund. GameStop (GME  ) continued its bull run, rising over 27% after a 57% rally on Wednesday on optimism following the announced that former Chewy (CHWY  ) co-founder and CEO Ryan Cohen was added to the retailer's board. Petco Health and Wellness (WOOF  ) and Poshmark (POSH  ) both popped in their public trading debuts, rising 44% and 132%, respectively, from their initial public offerings on Thursday.

Dow Jones Industrial Average (DIA  ): -0.22% or -68.95 points to 30,991.52

For Sector Performance, most sectors on the S&P 500 ended Thursday's session in negative territory, with Information Technology (XLK  ), Communication Services (XLC  ), Consumer Discretionary (XLY  ) and Consumer Staples (XLP  ) leading losses. Only four sectors made positive gains, with Real Estate (XLRE  ), Financials (XLF  ) and Industrials (XLI  ) finishing higher and Energy (XLE  ) jumping over 3%.

Nasdaq Composite Index (QQQ  ): -0.12% or -16.31 points to 13,112.64

For Commodities and Currency, the U.S. Dollar (UUP  ) slipped lower during Thursday's session following dovish comments from Federal Reserve Chair Powell on the central bank not raising interest rates or reducing its bond purchases in the near term. The dollar index, which measures the greenback against other global currencies, left the session slightly lower at 90.26 after rising in earlier trade. Gold (GLD  ) prices rose on Thursday following Powell's comments, with the bullion benefitting from a low rate environment. Spot gold rose as much as 0.8% in later afternoon trading and ended the session up 0.3% at $1,848.22 per ounce. U.S. gold futures, however, settled 0.2% lower at $1,851.40 per ounce. Crude oil prices climbed higher on Thursday, boosted by a weaker U.S. dollar but weighed down by coronavirus demand concerns and Powell's comments. International benchmark Brent Crude (BNO  ) rose 0.5% to $56.32 per barrel, while domestic index West Texas Intermediate (USO  ) jumped 1.25% higher at $53.57 each.

For Friday, market participants will turn their attention to fresh economic data for December, like retail sales and a preliminary consumer sentiment index reading. The fourth quarter earnings season also kicks off with earnings reports from big banks like JP Morgan (JPM  ), Citigroup (C  ) and Wells Fargo (WFC  ).

For Stocks, Virgin Galactic (SPCE  ) and Maxar Technologies (MAXR  ) both soared over 19% on news that Cathie Wood's Ark Invest is launching a space-exploration exchange-traded fund. GameStop (GME  ) continued its bull run, rising over 27% after a 57% rally on Wednesday on optimism following the announced that former Chewy (CHWY  ) co-founder and CEO Ryan Cohen was added to the retailer's board. Petco Health and Wellness (WOOF  ) and Poshmark (POSH  ) both popped in their public trading debuts, rising 44% and 132%, respectively, from their initial public offerings on Thursday.

For Sector Performance, most sectors on the S&P 500 ended Thursday's session in negative territory, with Information Technology (XLK  ), Communication Services (XLC  ), Consumer Discretionary (XLY  ) and Consumer Staples (XLP  ) leading losses. Only four sectors made positive gains, with Real Estate (XLRE  ), Financials (XLF  ) and Industrials (XLI  ) finishing higher and Energy (XLE  ) jumping over 3%.

For Commodities and Currency, the U.S. Dollar (UUP  ) slipped lower during Thursday's session following dovish comments from Federal Reserve Chair Powell on the central bank not raising interest rates or reducing its bond purchases in the near term. The dollar index, which measures the greenback against other global currencies, left the session slightly lower at 90.26 after rising in earlier trade. Gold (GLD  ) prices rose on Thursday following Powell's comments, with the bullion benefitting from a low rate environment. Spot gold rose as much as 0.8% in later afternoon trading and ended the session up 0.3% at $1,848.22 per ounce. U.S. gold futures, however, settled 0.2% lower at $1,851.40 per ounce. Crude oil prices climbed higher on Thursday, boosted by a weaker U.S. dollar but weighed down by coronavirus demand concerns and Powell's comments. International benchmark Brent Crude (BNO  ) rose 0.5% to $56.32 per barrel, while domestic index West Texas Intermediate (USO  ) jumped 1.25% higher at $53.57 each.

For Friday, market participants will turn their attention to fresh economic data for December, like retail sales and a preliminary consumer sentiment index reading. The fourth quarter earnings season also kicks off with earnings reports from big banks like JP Morgan (JPM  ), Citigroup (C  ) and Wells Fargo (WFC  ).