Wall Street rallies after jobs data

Wall Street rallies after jobs data

The S&P 500 jumped another 2.6% after a report said the USA job market surprisingly strengthened last month, bolstering hopes that the worst of the recession may have already passed.

The Dow Jones Industrial Average (DIA) surged 829.16 points, or 3.2%, to 27,148.26.

On Thursday, American Airlines surged 41% for the biggest gain in the S&P 500 after it said it plans to fly 55% of its normal US schedule next month, up from only 20% in April.

S&P 500 Futures traded 24 points, or 0.8%, higher, Nasdaq Futures up 32 points, or 0.3%.

The S&P 500 is now down just 5.7% from its record set in February after being down almost 34% earlier this year when recession worries were peaking.

In technology, Apple (NASDAQ:AAPL) soared 2.3% to all-time highs intraday on signs its services business continues to gather momentum.

Data from the Labor Department showed nonfarm payrolls rose by 2.509 million jobs last month after a record plunge of 20.687 million in April, and the unemployment rate unexpectedly fell to 13.3% in May from 14.7% in April.

The numbers were a shock to most analysts, who were expecting millions more job losses.

On Friday, Trump tweeted: "Really Big Jobs Report. This checks all the boxes for a solid report", said Drew Matus, chief market strategist at MetLife Investment Management.

Stocks began their massive rally in late March after the Federal Reserve came to the rescue with promises of huge aid to keep markets running smoothly.

Since the crisis, caused by a coronavirus, the government has poured into the economy roughly $3 billion to mitigate the effects of the pandemic.

Thursday's main focus was the Department of Labor's latest unemployment claims data, which revealed layoffs in the USA continued at a furious but slightly slower pace last week.

And shares of luxury retailer Tiffany & Co jumped 6.5 percent after Reuters news agency reported LVMH's $16.2-bn takeover deal was back on track.

The top performers on the NASDAQ Composite were Oasis Petroleum Inc (NASDAQ:) which rose 126.21% to 1.260, Extraction Oil & Gas Inc (NASDAQ:) which was up 53.24% to settle at 0.425 and Destination XL Group Inc (NASDAQ:) which gained 52.22% to close at 0.548.

In Europe, the euro jumped to a 12-week high against the dollar yesterday after another shot of European Central Bank stimulus to help economies slammed by the coronavirus pandemic, but world equity markets pulled in the reins after a strong seven-day run.

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