Wall Street surged after a strikingly upbeat May jobs report unexpectedly provided the clearest evidence yet that the U.S. economy is headed for a quicker-than-anticipated recovery. The Nasdaq breached its all-time closing high reached in February but pared its gains to end the session just below it. All three major U.S. stock indexes advanced two percent or more. “The numbers are a huge surprise to the upside,” said Michael Arone, chief investment strategist at State Street Global Advisors in Boston. “It would suggest a further confirmation the economy is coming back online,” Arone added. “This is a strong signal that the effects are temporary and that the economy is improving.” “Long may it last.” The Dow Jones Industrial Average rose 3.15% to 27,110.98, the S&P 500 gained 2.62% to 3,193.93 and the Nasdaq Composite added 2.06% to 9,814.08.
For the week, the S&P 500 gained 4.9%, the Dow rose 6.8% and the Nasdaq climbed 3.4%.
Gold prices dipped as hopes for a global economic rebound got a boost from stronger-than-expected U.S. nonfarm payrolls data, reducing demand for safe havens. “We had significantly stronger-than-expected U.S. payroll numbers – an increase of 2.5 million versus an expectation of a decline of 7.5 million – that 10-million swing has brought forward expectations of the economic recovery in the United States,” said Bart Melek, head of commodity strategies at TD Securities. Gold was also being pressured by stronger yields and a slightly firmer dollar, “meaning the opportunity cost to hold gold in the portfolio has gone up,” Melek added. Spot gold slid 1.72% to $1,681.25 per ounce. U.S. gold futures were down 2.34% to $1,686.90 an ounce.