InvestorQ : What explains the sudden rally in the US markets on Friday, the 04 December?
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What explains the sudden rally in the US markets on Friday, the 04 December?

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Dawn Cherian answered.
1 month ago
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On Friday, 04 December, the S&P 500 broad based index jumped to an all-time high despite the macro data showing the slowest jobs growth in 6 months. Ironically, this data point reinforced expectations of an all-new fiscal stimulus to revive the US. The excitement was so huge that 10 out of the 11 S&P indices traded higher. Energy led the gains.

Non-farm payrolls increased by just 245,000 in November after rising 610,000 in the month of October marking the most insignificant gain since the jobs recovery started in May this year. Analysts expect the dismal data to spur policymakers to push for a stimulus bill as, otherwise, more than 13 million people would lose unemployment benefits.

In addition, the massive $908 billion Coronavirus aid plan also gradually gained momentum after a month long stand-off between Republicans and Democrats over the potential size of the stimulus package. This led to the advances outnumber the declines by 3.5:1.

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