NEW YORK: The S&P 500 and the Dow retreated from record highs on Wednesday as a surprise rise in weekly jobless claims added to signs the recovery of the labour market was stalling amid a surge in Covid-19 infections.

The Labour Department’s report showed initial claims for state unemployment benefits last week increased to 778,000 from 748,000 in the prior week. Economists polled by Reuters had forecast 730,000 applications.

Data also showed US consumer spending, which accounts for more than two-thirds of domestic economic activity, increased solidly in October, but personal income fell.

At 11:45 a.m. ET, the Dow Jones Industrial Average was down 0.71% at 29,832.01. The S&P 500 was down 0.41%, while the Nasdaq Composite was up just 0.03%.

Major US banks JPMorgan Chase & Co and Goldman Sachs Group, among the most economically-sensitive, were down more than 1%.