Stocks continue impressive run. US stocks opened sharply higher after the May nonfarm payrolls came in 10 million better than expected (no, that is not a typo), with the S&P 500 Index looking at its third consecutive weekly gain. Global markets continued to rally on an otherwise slow news day, with the usual suspects of better high-frequency economic data, no new spike in COVID-19 cases, and record stimulus all cited to reasons for the record run.
Jobs report shocker (in a good way). The labor market delivered a pleasant surprise as the US economy somehow added 2.5 million net new jobs in May, compared with expectations for 7.5 million job losses and following 20.7 million jobs lost in April. Bloomberg’s consensus expectations for the unemployment rate at 19% proved way too high, with that number falling from 14.7% in April to 13.3% in May. Employees classified as employed would add another 3% to the rate and the trajectory from here may be gradual, but this report provides solid evidence of a bottoming job market. We will discuss the jobs data in more detail later today on the LPL Research blog.
LPL Research on Yahoo! Finance. LPL Financial Senior Market Strategist Ryan Detrick joined The Final Round yesterday to discuss the best 50-day rally in history and more. You can watch the full interview here.
COVID-19 news. On Thursday, the number of new US cases fell 6.4% from the prior week (to about 21,100) as tests rose 12% and hospitalizations and deaths continue to trend steadily lower. New York City reported no new confirmed COVID-19 fatalities for the first time since March. The European Union is planning to extend its ban on most travel to the bloc until July 1.
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