Wall Street’s main indices hit record highs in a broad-based rally on Friday, as data showing strong job growth in October, coupled with Pfizer’s COVID-19 pill update, boosted sentiment about economic growth. promoted.
Ten of the 11 major S&P sectors advanced in early trading, with economy-sensitive energy, financials and industry gaining more than 1% each.
The small-cap Russell 2000 Index gained 1.5%, which also hit a record high.
A Labor Department report shows US employment grew more than expected last month as COVID-19 infections eased over the summer, offering more evidence that economic activity was quickly gaining momentum in the fourth quarter.
“Today’s release is a confirmation that the economy is on the right track and there is a possibility that the Santa Claus rally may be the strongest in recent memory,” said Peter Esseley, Commonwealth Financial Network’s Head of Portfolio Management.
Pfizer Inc jumped 9.3% after the drugmaker’s experimental antiviral pill for COVID-19 reduced the odds of hospitalization or death by 89% for adults at risk of developing serious illness.
Merck shares slipped 8.6%, dragging the S&P healthcare sector down.
Travel shares rose after Pfizer’s announcement, with the S&P 1500 Airlines Index climbing 5.5% and cruise operators Carnival Corp, Royal Caribbean Cruises and Norwegian Cruises rising between 7.2% and 5.8%.
“We haven’t had much more positive news… now it seems that this is really the end of the pandemic,” said Thomas Hayes, managing member of Great Hill Capital LLC, New York.
“It’s a quick-acting solution… if you get diagnosed, you just take the pill and you’re back in action, so the market loves it, the travel and leisure sector loves it and we love it.” We do.”
Expedia jumped 11.0% after the online travel agency posted third-quarter revenue, while Pinterest Inc. climbed 3.9% on an upbeat fourth-quarter revenue forecast.
A spectacular third-quarter reporting season, coupled with an encouraging outlook on earnings growth, as well as a central bank in no hurry to hike interest rates, have fueled investor appetite for equities, leading to inflation. Previous concerns about supply chain disruption and labor shortages have helped. .
Meanwhile, the US House of Representatives is expected to vote on Friday on the social policy and climate change bill and the bipartisan infrastructure bill.
At 10:00 a.m., the Dow Jones Industrial Average was up 322.01 points, or 0.89%, at 36,446.24, the S&P 500 was up 34.61 points, or 0.74%, at 4,714.67, and the Nasdaq Composite was up 94.83 points, or 0.59. %, at 16,035.14.
Reuters investors have reached a settlement with current and former company executives to settle a lawsuit over the safety monitoring of the 737 MAX, sources told the Boeing Company after a 3.3% gain.
Peloton Interactive Inc. sank 30.8% after lowering its full-year sales outlook to $1 billion.
Advancing issues declined from a 3.12-to-1 ratio on the NYSE and 1.81-to-1 on the Nasdaq.
The S&P index recorded 79 new 52-week highs and no new lows, while the Nasdaq recorded 217 new highs and 35 new lows.
This story has been published without modification in text from a wire agency feed. Only the title has been changed.
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