Wall Street jumps after surprise job additions in May

June 05, 2020: U.S. stock indexes jumped on Friday, with the Nasdaq Composite less than 1% away from a record high, after a closely watched report showed surprise job additions in May, lending weight to hopes of a faster economic rebound from a coronavirus-led slump.

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.

“It's shocking, it's a refreshing thing to experience, a very positive and a far better-than-expected report,” said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.

“The unemployment rate was likely to peak in May and then get better from there, but it looks as though it might have peaked in April, which is a very positive development for the economy.”

The S&P 500 banks sub-index, considered interest-rate sensitive, jumped 4.8% as U.S. Treasury yields rose after the data.

Boeing Co gained 9.2%, the biggest boost to the Dow Jones index, on hopes of a pickup in air travel a day after American Airlines Group Inc and United Airlines said they would boost their U.S. flight schedule next month.

Reuters

Posted on: 2020-06-05T19:58:00+05:00

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