U.S. stocks rallied to record levels on Friday after the October jobs report came in better than expected, boosting optimism about the economic recovery.
The Dow Jones Industrial Average rose 250 points, while S&P 500 gained 0.5%, on pace for its seventh straight positive day. The tech-heavy Nasdaq Composite climbed 0.5%. All three major averaged reached their respective intraday records during the session.
The move for stocks came as job gains for the month of October totaled 531,000. Consensus estimates called for 450,000 jobs added, according to Dow Jones. The report also revised September’s disappointing number up to 312,000 job gains from 194,000 previously, and increased its August number by a similar amount.
“Markets are cheering a much better than expected jobs report this morning as nonfarm payrolls smashed expectations,” said Cliff Hodge, chief investment officer at Cornerstone Wealth. “Gains were broad-based across industries, and manufacturing was a real bright spot.”
The jobs report was not the only optimistic economic news to reach the market on Friday. A major development in the fight against the pandemic boosted shares of Pfizer, which rose more than 7% after the company said its Covid-19 drug, used with an HIV drug, cut the risk of hospitalization by 89%.
Recovery stock Expedia saw its shares roar higher by 13% a day after the company said renewed travel demand boosted its top and bottom lines higher than analysts had expected.
Peloton shares cratered more than 33% after the fitness platform and maker of interactive treadmills and exercise bikes reported a much larger loss than expected and cut its full-year outlook as fitness buffs headed back to the gym and away from at-home workouts.
The company also cited ongoing supply chain challenges for its “challenged visibility” over the near term that CEO John Foley said is causing the company to lower its expectations.
Earlier this week, investor digested the Federal Reserve’s plan to begin tapering its pandemic aid by the end of November, putting the central bank on track to end its asset purchase program by the middle of next year.
All three major averages are on track to end the week higher. The Dow is up 1.3% on the week, while the S&P 500 is 2.2% higher and the Nasdaq Composite is up 3.3%.