Wall St. opens higher on strong job growth, extends rally


Wall St. opens higher on strong job growth, extends rally

On Friday, a swathe of US stock indices had opened up the session modestly higher, as investors’ morale spiraled higher following a cascade of upbeat economic data including a modest gain in US nonfarm payrolls alongside a dip in unemployment rate to 4.5 per cent, while a jubilant factory output and consumer spending last month had proffered further impetus to a roaring US economy, adding to steam on a Wall Street which has been witnessing an upscaled volatility over recent past.

As of US morning trading hours, trade-sensitive Dow added 0.17 per cent to 34,686.3 and Wall St. benchmark S&P 500 gained 0.22 per cent to 4,587.45, while tech-heavy Nasdaq was last trading 0.30 per cent higher to 16,041.40.

Wall St. opens higher, extends gains

In point of fact, in the day’s robust gain in Wall Street came against backdrop of a sharp rebound a day earlier, which had been largely galvanized by a broad-based buy-the-dip move from a barrage of bargain hunters, eventually paring the losses stomached over recent past.

Besides, investors appear to be favoring value stocks over growth alongside economically sensitive transports with small cap Russell 2000 largely outperforming broader market, as the world’s No 2 planemaker Boeing Co climbed after breaking off a media headline that underscored the planemaker’s progress towards China approval of its best-selling 737 Max following a global-scale grounding spanning over two and a half years.

On top of that, among top three Wall St. majors, Dow led the tally of gains and notched the largest intra-session percentage gain since March 5, while an ease in Omicron fears had helped S&P 500’s Airlines and Hotel & Restaurant sub-sectors gain as much as 7.5 per cent and 3.8 per cent respectively.

Citing statistics, on Thursday’s Wall St. closing bell, Dow leapt 1.82 per cent to 34,639.79, S&P 500 surged 1.42 per cent to 4,577.1, while Nasdaq soared 0.83 per cent to 15,381.32. Meanwhile, addressing to yesterday’s sharp bounce-back in the Wall Street, a chief market strategist at LPL Financial Charlotte, North Carolina, Ryan Detrick said, “We went 29 days in a row in the S&P 500 without a 1% change, up or down, but boom - Omicron hits and five days we’ve had this blast of volatility.

After the worst two-day drop in more than a year, we’re finally seeing a bit of a bounce. Buyers are starting to nibble after the recent weakness and pushed stocks higher, but the uncertainty of Omicron is still out there”.

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