Dow reclaims 27,000 level as it extends Friday rally to 900 points
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.
"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 SPX, +2.78% climbed 2.
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