Wall Street jumps, Nasdaq set for record closing high after surprise jobs report
By Stephen Culp NEW YORK (Reuters) - Wall Street surged on Friday, and the Nasdaq was on course to set a new record closing high after the May jobs provided an astounding upside surprise and the clearest evidence yet that the U.S. economy is bouncing back sooner than expected from pandemic-related lockdowns. The Nasdaq is set to be the first among the three major U.S
By Stephen Culp
NEW YORK (Reuters) - Wall Street surged on Friday, and the Nasdaq was on course to set a new record closing high after the May jobs provided an astounding upside surprise and the clearest evidence yet that the U.S. economy is bouncing back sooner than expected from pandemic-related lockdowns.
The Nasdaq is set to be the first among the three major U.S. stock indexes to reclaim all-time highs reached in February. The S&P 500 and the Dow are now within 6% and 8% of overtaking their record closing levels.
The benchmark S&P 500 is now within one percent of showing a year-to-date gain.
The U.S. economy added a remarkable 2.5 million jobs last month, rebounding from April's record 20.7 million payrolls drop and pushing the unemployment rate down to 13.3%. Analysts saw unemployment soaring to a historic 19.8%.
"I don't think anybody anticipated this," said Michael Arone, chief investment strategist at State Street Global Advisors in Boston.
"It has confirmed what many folks were suggesting - that the effects on the labor market from the pandemic were temporary and that when the economy reopened and the infection rates started to diminish, that these jobs would come back."
"This report confirms that."
U.S. Treasury yields rose on the jobs data, giving a boost to interest rate-sensitive banks and sending the S&P 500 Banks index <.SPXBK> up 5.5%.
Airlines, among the hardest hit by the coronavirus crisis, soared, with the ARCA Airlines index jumping 8.5%.
But the World Health Organization warned that the COVID-19 pandemic, which brought the global economy to its knees in the wake of mandated shutdowns, is far from over and new cases are on the rise.
Market participants now turn their focus to the U.S. Federal Reserve, at whose monetary policy meeting next week the latest jobs data will almost certainly be discussed.
The Dow Jones Industrial Average <.DJI> rose 891.6 points, or 3.39%, to 27,173.42, the S&P 500 <.SPX> gained 87.41 points, or 2.81%, to 3,199.76 and the Nasdaq Composite <.IXIC> added 207.37 points, or 2.16%, to 9,823.18.
All 11 major sectors of the S&P 500 were in the black, with energy <.SPNY>, financials <.SPSY> and industrials <.SPLRCI> leading the gainers in a continuation of a rotation into cyclicals, which were beaten up amid economic lockdowns.
Small caps and transportation stocks also outperformed, with the Russell 2000 <.RUT> and Dow Transportation <.DJT> up 4.7% and 3.9%, respectively.
Shares of luxury retailer Tiffany & Co
Drugmaker Novavax Inc
Advancing issues outnumbered declining ones on the NYSE by a 6.08-to-1 ratio; on Nasdaq, a 3.70-to-1 ratio favored advancers.
The S&P 500 posted 24 new 52-week highs and no new lows; the Nasdaq Composite recorded 82 new highs and 2 new lows.
(Reporting by Stephen Culp; additional reporting by Herb Lash; Editing by Cynthia Osterman)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.