US stock indices surged after the publication of the US labor market report at the beginning of November.
On November 5, US key stock indices were confidently rising. The jump was caused by the impressive labor market data, including a slump in the unemployment rate.
Three leading indices such as the Dow Jones (DJIA), the NASDAQ, and the S&P 500 hit new all-time highs. The Dow Jones Industrial Average soared by 0.68% to 36,368.17 points, whereas the NASDAQ Composite jumped by 0.66% to 16,042.3 points. The S&P 500 advanced by 0.7% to 4,712.64 points.
Climbing to the record highs, the NASDAQ Composite passed the barrier of 16,000 for the first time in its history. The index reached the level of 16,051.2 points. The Dow Jones Industrial Average skyrocketed to 36,384.72 points, whereas the S&P 500 surged to 4,714.1 points.
The optimism in the US stock market was triggered by encouraging macroeconomic data. Last month, the US unemployment rate dropped to 4.6% compared to 4.8% in September. Economists had expected a smaller decline to 4.7%. The number of employed people in the non-farm sector increased by 531,000. It is the fastest growth logged since July 2021.
According to Peter Essele, an analyst at Commonwealth Financial Network, the current macroeconomic data has encouraged investors. The disclosed reports prove the effectiveness of the chosen economic policy.
Analysts emphasize that shares of pharmaceutical company Pfizer advanced by 8.55%. The share price was boosted by an announcement made by the company’s management. Pfizer representatives stated the effectiveness of new drug Paxlovid. The drug is released in the form of pills to treat coronavirus. The research unveiled that the use of Paxlovid reduces the risk of hospitalization or death from COVID-19 by 89%.
