Fri, 10 Jul 2020

U.S. stocks accelerate in astonishing buying spree

Raleigh News
06 Jun 2020, 08:07 GMT+10

NEW YORK, New York - U.S stocks roared on Friday as employment data showed the U.S, economy could bounce back faster than expected.

The major indices all made huge ground, taking them to within striking distance of their all-time closing highs in February. In fact the Nasdaq Composite hit its historic high during the session but then fell back.

The data showed 2.5 million jobs were added in May, compared to April's historic loss of 20.7 millionjobs. While forecasters were anticipating the unemployment level to rise to 19.80%, it fell stunningly to 13.30%.

"The numbers are a huge surprise to the upside," Michael Arone, chief investment strategist at State Street Global Advisors in Boston told Reuters Thomson Friday.

"It would suggest a further confirmation the economy is coming back online. "This is a strong signal that the effects are temporary and that the economy is improving," he added. "Long may it last."

At the close of trading Friday, the Dow Jones Industrial Average was ahead 829.16 points, or 3.15%, at 27,110.98.

The Standard and Poor's 500 advanced 81.58 points, or 2.62%, to 3,193.93.

The Nasdaq Composite gained 198.27 points, or 2.06%, to 9,814.08.

The U.S., dollar corrected higher after its recent run of losses. The greenback had fallen below 1.1300 to the euro in Asia but clawed back some of the lost ground to finish around 1.1291 in New York on Friday.

The British pound was strong, although off its highs, at 1.2669. The Japanese yen edged up to 109.59. The Swiss franc dipped to 0.9622.

The Canadian, Australian and New Zealand dollars retained their strength, albeit a touch below their close in Asia, at 1.3422, 0.6968 and 0.6508 respectively.

Equity markets overseas joined the euphoria. London's FTSE 100 jumped 2.25%. In Europe, Germany's Dax rose 3.36%, while in Paris, the CAC 40 jumped 3.72%.

On Asian markets, the best performer of the day, despite China's new national security law, was Hong Kong's Hang Seng. The key index jumped 421.92 points or 1.73% to 24,767.71.

The Nikkei 225 in Japan closed 167.99 points or 0.74% higher at 22,863.73.

China's Shanghai Composite rose 11.55 points or 0.40% to 2,930.80.

The Australian All Ordinaries edged up 4.50 points or 0.07% to 6,116.50.

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