US STOCKS-Nasdaq Closes In On Record High After Surprise Jobs Report
By Devik Jain and Shreyashi Sanyal
June 5 (Reuters) - A stunning U.S.
jobs report on Friday put the Nasdaq within striking distance of its record high as investors flocked back to riskier assets on hopes of a swift economic rebound from the coronavirus-driven slump.
The blue-chip Dow Jones index added 1,000 points, briefly hitting a level not seen since early March, iplc.f3322.net while the S&P 500 is less than 1% away from turning positive on the year.
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.
"Today was a shocking jobs number and for the first time this year it was a positive shock," said Chris Zaccarelli, chief investment officer of Independent Advisor Alliance in Charlotte, North Carolina.
"At 13.3%, we are still at a higher rate than any that we hit during the financial crisis in 2007-2009, but as long as that continues to move lower, it will show that the reopening of the economy is proceeding smoothly."
Wall Street has rebounded sharply from a coronavirus-driven crash in March as investors bet on a revival in business activity following the easing of a nationwide lockdown, and the S&P 500 is now just about 6% below its February record high.
The S&P 500 banks sub-index, considered interest-rate sensitive, jumped 5.1% as U.S.
Treasury yields rose after the data.
Boeing Co gained 16.2%, 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.
The NYSE ARCA Airline index also jumped 10.8%.
The Dow Jones Transport Average index, often seen as a barometer for economic confidence, rose 4.6%.
All major S&P 500 sector indexes rose, with investors buying into more cyclical stocks including energy, financials , and consumer discretionary. The defensive consumer staples index was among the smallest gainers.
At 12:55 p.m.
ET, the Dow Jones Industrial Average was up 927.89 points, or 3.53%, at 27,209.71, the S&P 500 was up 86.12 points, or 2.77%, at 3,198.47 and the Nasdaq Composite was up 202.45 points, or 2.11%, at 9,818.27.
Fears of more disruptions from social unrest have also eased, with the largely peaceful protests against the killing of a black man in police custody waning into Friday morning and emergency curfews in many cities being lifted.
Vaccine maker Novavax Inc rose 3.2% after saying it would get up to $60 million from the U.S.
Department of Defense to fund manufacturing of its COVID-19 vaccine candidate.
Tiffany & Co jumped 5.9% after Reuters reported the LVMH is not seeking to renegotiate its $16.2-billion takeover deal after deliberating whether to do so.
Advancing issues outnumbered decliners for a 6.18-to-1 ratio on the NYSE and a 3.54-to-1 ratio on the Nasdaq.
The S&P index recorded 23 new 52-week highs and no new low, while the Nasdaq recorded 77 new highs and two new lows.
(Reporting by Devik Jain and Shreyashi Sanyal in Bengaluru; Editing by Uttaresh.V and Shounak Dasgupta)