US Shares Retreat Despite Record Low Jobs Data

Markets retreated from their previous surging for three successive trading sessions, opening lower Thursday morning, despite fresh data from the US Labour Department that showed the number of Americans filing initial jobless claims fell to the lowest level in 52 years.

All major US indexes were down in early trading, led by a 165.80-point drop in the Dow to 35,597. The S&P 500 pulled back 11.09 points after climbing earlier this week to a near record high, and the tech-focused Nasdaq opened 11.23 points lower to 16,324.75.

Weekly jobless claims fell to their lowest level since September 1969, below the pre-pandemic average of about 220,000 per week, further signaling a tight labor market as employers seek to retain workers.

The US Food and Drug Administration greenlighted emergency use authorization of Pfizer and BioNTech’s COVID-19 vaccine booster shot for those aged 16 and 17 as the CDC strengthens its recommendations for those who are eligible to get a third dose. Shares of Pfizer (PFE) were up on 1.08% on Thursday, trading at $52.44 per share.

Investors continue to assess the risks of Omicron infections, with mixed news about the severity of illness and its response to vaccines.

If COVID gradually improves rather than a major resurgence in 2022, it is expected to see a continued recovery in the US economy, as well as continued recovery in services spending.