[Asia Economy New York=Correspondent Baek Jong-min] The major indices of the New York stock market closed higher, reflecting expectations of strong employment data. The S&P 500 index reached an all-time high.
On the 5th (local time), the Dow Jones Industrial Average rose 271.58 points (0.78%) to 35,064.25, the S&P 500 index increased 26.44 points (0.60%) to 4,429.10, and the Nasdaq index closed at 14,895.12, up 114.58 points (0.78%).
After showing caution due to weak private employment data released the previous day, the major indices welcomed the news that weekly unemployment insurance claims fell by 14,000 to 385,000 compared to the previous week.
Ahead of the Labor Department's July employment report scheduled for release the next day, this was interpreted as a positive signal. The expected nonfarm payrolls for July, compiled by Dow Jones, is 845,000.
Morgan Stanley predicted that July nonfarm payrolls would reach 1,025,000.
Following the weekly unemployment claims announcement, the U.S. 10-year Treasury yield recovered to the 1.21% range. The U.S. Treasury yield had fallen to 1.13%, the lowest level since February, the day before due to concerns over delayed recovery in the labor market.
Reports that the Senate could finalize a $1 trillion infrastructure investment bill within the day also stimulated investor sentiment.
Moderna, which announced its Q2 earnings that day, saw its stock price surge as much as 8% intraday thanks to COVID-19 vaccines delivering better-than-expected net income and sales, but it closed down 0.67% amid evaluations of declining market share.
Robinhood, which had surged 50% the previous day due to heavy individual trading, plunged 27.5% on news that existing shareholders plan to sell 97.9 million shares.
Casino companies Wynn and MGM surged 8% and 6%, respectively, on strong earnings. Streaming company Roku fell 4% as new user acquisition fell short of expectations.
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