Stock Market Moving Towards Records Awaiting Job Data
All investors are aware of the effect job data has on the stock market via various indexes. This month is especially important since the past few job reports underperformed severely, resulting in the major indices dropping. And while this month’s data regarding employment was nigh, the stock markets were surging towards record highs. And economists seem to have finally managed to step in line with reality and make a relatively accurate prediction. Namely, this month’s job data actually exceeded expectations, contrasting the previous few, which were severe disappointments.
So naturally, when stock markets opened on Friday, the major US indexes started soaring straight away. Namely, all three have had uncharacteristically steep growths, all beating 0.5%. The Dow Jones Industrial Average rose 232.69 points, translating to an increase of 0.6%. The Nasdaq Composite was nearly identical percentage-wise, advancing 95.41 points to 16,035.72. And the big winner was the S&P 500, jumping 31.60 points and landing at 4,711,66, which constitutes a 0.7% rise.
In other positive stock market news, Pfizer released a study confirming the success of a COVID antiviral drug. That creates room for cautious optimism even in non-financial related circles, as it may ease the pandemic. Naturally, it also had a massively positive impact on the company’s stock, causing it to grow 9%. The drug is in a phase 2/3 study, and the company claims it reduces death and hospitalization by 89%.
Pfizer’s win also weakened one of its primary rivals in Merck & Co. MRK is also developing a drug, although their report last month claimed it reduced hospitalization and death by 50%. It dropped at the same rate that Pfizer grew, declining 9%. Another major loser was Peloton, an exercise equipment producer. It had a weaker performance than investors expected and ended up dropping by a massive 30%.
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