US Markets Hit New Records On Stimulus Hopes

Wall Street's main indexes rose to all-time highs on Friday as data showing the slowest US jobs growth in six months raised investors' expectations for a new fiscal relief bill to help revive the coronavirus-hit economy.

The Labor Department's closely watched report showed nonfarm payrolls increased by 245,000 jobs in November, below economists' expectations of 469,000 jobs and the smallest gain since the labour recovery started in May.

President-elect Joe Biden said Friday's "grim" jobs report shows the economic recovery is stalling and warned the "dark winter" ahead would exacerbate the pain unless the US Congress passes a coronavirus relief bill immediately.

"The bad news of the weakening jobs picture is potentially good news for investors because it means that the stimulus bill is much more likely to take place in a fairly short time frame," said Ryan Detrick, senior market strategist at LPL Financial in North Carolina.

The Dow Jones Industrial Average rose 0.8 percent to 30,218, the S&P 500 gained 0.9 percent to 3,699 and the Nasdaq added 0.7 percent to 12,464.

The benchmark 10-year yield hit its highest level since March at over 0.98 percent, helping support financial shares which are highly sensitive to interest rates.

Positive coronavirus vaccine updates from drugmakers have raised investor hopes for an economic recovery next year and overshadowed worries over a surge in US infections. (Reuters)