Post by bot on Jun 5, 2020 20:29:27 GMT -5
Dow surges 900 points retakes 27,000 as May jobs report shows 'mind-blowing' 2.5 million increase in payrolls and unemployment falls
U.S. stock indexes surged higher on Friday, adding to already sharp gains in the morning after a report on employment in the U.S. showed an unexpected rise in jobs and the rate of unemployment fell rather than rose as had been feared. The report showed that 2.5 million jobs were added last month and the unemployment rate fell to 13.3% from 14.7% in April. Economists had predicted the official unemployment rate will climb to 19% in May, a MarketWatch survey showed. Friday's nonfarm-payroll also was expected to show that 7.25 million U.S. jobs were lost in May, after 20 million were lost in April due to the COVID-19 pandemic. "The US unemployment rate has shocked everyone because the number was much lower than the market expectation," wrote Naeem Aslam, chief market strategist at AvaTrade, in a note after the report was released. "Speculators were whispering for 20%. This a mind-blowing number and shows that the economy is improving," he wrote. The Dow Jones Industrial Average was 900 points, or 3.4%, higher at 27,178, those for the S&P 500 index climbed 2.7% at 3,196, while the Nasdaq Composite climbed 1.9%% at 9,795. The move for equities on Friday comes after the Dow ended 11.93 points, or less than 0.1%, higher on Thursday at 26,281.82. The fourth straight gain matches a similar streak of wins for the blue-chip index ended April 27, according to FactSet data. Meanwhile, the S&P 500 fell 10.52 points, or 0.3%, to close at 3,112.35 and the Nasdaq Composite Index finished 67.10 points, or 0.7%, lower to wrap up the session at 9,615.81, putting the index about 2.1% from its Feb.
U.S. stock indexes surged higher on Friday, adding to already sharp gains in the morning after a report on employment in the U.S. showed an unexpected rise in jobs and the rate of unemployment fell rather than rose as had been feared. The report showed that 2.5 million jobs were added last month and the unemployment rate fell to 13.3% from 14.7% in April. Economists had predicted the official unemployment rate will climb to 19% in May, a MarketWatch survey showed. Friday's nonfarm-payroll also was expected to show that 7.25 million U.S. jobs were lost in May, after 20 million were lost in April due to the COVID-19 pandemic. "The US unemployment rate has shocked everyone because the number was much lower than the market expectation," wrote Naeem Aslam, chief market strategist at AvaTrade, in a note after the report was released. "Speculators were whispering for 20%. This a mind-blowing number and shows that the economy is improving," he wrote. The Dow Jones Industrial Average was 900 points, or 3.4%, higher at 27,178, those for the S&P 500 index climbed 2.7% at 3,196, while the Nasdaq Composite climbed 1.9%% at 9,795. The move for equities on Friday comes after the Dow ended 11.93 points, or less than 0.1%, higher on Thursday at 26,281.82. The fourth straight gain matches a similar streak of wins for the blue-chip index ended April 27, according to FactSet data. Meanwhile, the S&P 500 fell 10.52 points, or 0.3%, to close at 3,112.35 and the Nasdaq Composite Index finished 67.10 points, or 0.7%, lower to wrap up the session at 9,615.81, putting the index about 2.1% from its Feb.