Wall Street Jumps on Surprise Improvement in Labor Market

Wall Street Jumps on Surprise Improvement in Labor Market

Wall Street Jumps on Surprise Improvement in Labor Market

The S&P 500 is now down only about 6.3 per cent from its record set in February after earlier being down almost 34 per cent. The S&P 500 fell 10.52 points, or 0.34 per cent, to 3,112.35.

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

"Something like this builds credibility for what the stock market has been telling you", said Brian Belkin, chief investment strategist for BMO Capital Markets.

In economic data, US employers added more than 2.5 million workers in May, confounding expectations for a decline of 8 million, the Labor Department reported Friday.

Market participants also kept a keen eye on moves across the pond, with the European Central Bank's policy decision surprising markets with a larger-than-expected increase in its bond-buying programme against the pandemic.

The unemployment rate for May is projected to rise to 19.8%, approaching levels last seen during the Great Depression, from 14.7% in April, while nonfarm payrolls are estimated to have dropped another 8 million in the month.

All major S&P 500 sector indexes rose, with the energy sub-index's leading gains with a jump of 7.2%, while the defensive consumer staples index added the smallest gains.

Share prices have climbed recently on optimism that the recession brought on by the coronavirus pandemic might end quickly as economies reopen from shutdowns and travel resumes.

Capitol Hill also agreed on unprecedented amounts of aid for the economy, which helped eliminate the worst-case scenario for many investors of a full-blown financial crisis.

eBay jumped. The e-commerce company raised its revenue and profit outlook for the current quarter as people staying at home ordered more goods off its platform.

The Department of Justice gave anti-trust approval for Charles Schwab Corp's purchase of TD Ameritrade Holding Corp, sending their shares up 5.5% and 9.0%, respectively.

But with many schools and restaurants still closed, the maker of Jif peanut butter, J.M. Smucker, is seeing slower sales to its food service clients, so it forecast sales for the full year would decline.

Rising stocks outnumbered declining ones on the New York Stock Exchange by 2443 to 455 and 48 ended unchanged; on the Nasdaq Stock Exchange, 2007 rose and 687 declined, while 47 ended unchanged.

Nasdaq reache new record closing high. Elsewhere in commodities trading, Crude oil for delivery in July rose 4.12% or 1.54 to hit $38.95 a barrel, while the August Brent oil contract rose 4.95% or 1.98 to trade at $41.97 a barrel.

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