A record jobs added
(CNBC) Here's what happened to the stock market on Friday
The Dow rallied 829.16 points, or 3.15%, to close at 27,110.68. The S&P 500 jumped 2.62% to 3,193.93. The Nasdaq Composite surged 2.06% to hit a record high and close at 9,914.08. A record surge in U.S. jobs sent stocks flying as traders cheered the prospects of the economy reopening.
(CNBC) May sees biggest jobs increase ever of 2.5 million as economy starts to recover from coronavirs
(Globe) After bottoming out on March 23, US stocks have recouped more than 90 percent of their losses from the coronavirus crash. The Standard & Poor's 500 index is back to the level where it stood last fall, when the economy was solid and there was little indecation the good times would end anytime soon.
(CNBC) The widely cited 'disconnect' between Wall Street and Main Street sudenly appears less confounding
Key Points:
Friday's rally pulled the S&P 500 just about even for the year. Including dividends, the market's total return for 2020 is positive.
The improvement in economic indicators from quite-depressed levels has mde the stock market's dramatic surge off the March 23 lows seen a bit less disconnected from the economic fundamentals.
But after this ripping rally, is the market catching up to reality, or running ahead of it?
The S&P 500 relative strength index, a measure of the magnitude and persistence of a trend, breached the 70 level Friday, and it rarely gets too far above that.
Equities always attempt to run ahead of the data, they care more about the direction of change rather than the level of activity, and always climb a wall of worry.
(CNBC) European markets close higher after U.S. jobs data surprises
The U.S. unemployment rate for May came in at 13.3%, much lower than the 19.5% expected by economists.
The ECB on Thursday announced a 600 billion euro expansion of its Pandemic Emergency Purchase Programme (PEPP), a larger increase than anylysts had been expecting.