Major equity indexes in the U.S. started the day in the positive territory as the strong employment data from the U.S. boosted the market sentiment and ramped up the demand for risk-sensitive stocks. As of writing, the Dow Jones Industrial Average was up 0.57% on the day while the S&P 500 and the Nasdaq Composite were adding 0.6% and 0.8%, respectively. Reflecting the risk-on atmosphere, the CBOE Volatility Index, Wall Street’s fear gauge, is down nearly 6% on the day.
Among the 11 major S&P 500 sectors, which are all in the positive territory in the early trade, Consumer Discretionary and Energy both rise around 1% to lead the rally while Real Estate and Utilities, defensive sectors, are posting the smallest gains.
The U.S. Bureau of Labor Statistics today reported that nonfarm payrolls increased by 263,000 in April to beat the market expectatioın of 185,000. Moreover, the unemployment rate dropped to its lowest level in nearly 49 years at 3.6%.
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