Investing.com - U.S. stocks surged on Friday after the government revealed the economy added more jobs than expected in May.
At the close of U.S. trading, the Dow Jones Industrial Average finished up 1.38%, the S&P 500 index ended up 1.28%, while the Nasdaq Composite index rose 1.32%.
The Bureau of Labor Statistics said the U.S. economy added 175,000 jobs in May, beating expectations for an increase of 170,000, after 149,000 jobs were created the previous month.
The headline U.S. unemployment rate ticked up to 7.6% last month, from 7.5% in April as more individuals entered the labor force, which drew applause from markets.
Analysts were expecting the unemployment rate to remain unchanged.
Stocks surged especially hard on sentiments that while the May jobs report suggested economy is improving, recovery still won't likely be strong enough to prompt the Federal Reserve to taper its stimulus programs — a double win for equities.
Monetary stimulus tools such as the Fed's USD85 billion monthly bond-buying program flood the economy with liquidity to spur recovery and keep borrowing costs low, a combination that sends stock prices rising as a side effect.
Leading Dow Jones Industrial Average performers included Boeing, up 2.75%, Disney, up 2.68%, and American Express, up 2.36%.
The Dow Jones Industrial Average's worst performers included AT&T, down 1.01%, Merck, down 0.78%, and Intel, down 0.24%.
European indices, meanwhile, finished higher.
After the close of European trade, the EURO STOXX 50 rose 1.79%, France's CAC 40 rose 1.53%, while Germany's DAX 30 finished up 1.92%. Meanwhile, in the U.K. the FTSE 100 finished up 1.20%.
In Europe earlier, official data revealed that German industrial production rose 1.8% in April, beating expectations for a 0.2% decline and after a 1.2% increase the previous month.
Elsewhere, Germany's trade surplus expanded unexpectedly in April, widening to EUR17.7 billion from a EUR17.6 billion surplus the previous month.
Analysts were expecting the trade surplus to narrow to EUR17.2 billion in April.
Meanwhile in the U.K., official data revealed that the trade deficit narrowed more than expected in April, narrowing to GBP8.2 billion from a GBP9.2 billion deficit the previous month.
Analysts were expecting the trade deficit to narrow to GBP8.8 billion in April.
In a separate report, the Bank of England said its inflation expectations remained unchanged at 3.6%.
At the close of U.S. trading, the Dow Jones Industrial Average finished up 1.38%, the S&P 500 index ended up 1.28%, while the Nasdaq Composite index rose 1.32%.
The Bureau of Labor Statistics said the U.S. economy added 175,000 jobs in May, beating expectations for an increase of 170,000, after 149,000 jobs were created the previous month.
The headline U.S. unemployment rate ticked up to 7.6% last month, from 7.5% in April as more individuals entered the labor force, which drew applause from markets.
Analysts were expecting the unemployment rate to remain unchanged.
Stocks surged especially hard on sentiments that while the May jobs report suggested economy is improving, recovery still won't likely be strong enough to prompt the Federal Reserve to taper its stimulus programs — a double win for equities.
Monetary stimulus tools such as the Fed's USD85 billion monthly bond-buying program flood the economy with liquidity to spur recovery and keep borrowing costs low, a combination that sends stock prices rising as a side effect.
Leading Dow Jones Industrial Average performers included Boeing, up 2.75%, Disney, up 2.68%, and American Express, up 2.36%.
The Dow Jones Industrial Average's worst performers included AT&T, down 1.01%, Merck, down 0.78%, and Intel, down 0.24%.
European indices, meanwhile, finished higher.
After the close of European trade, the EURO STOXX 50 rose 1.79%, France's CAC 40 rose 1.53%, while Germany's DAX 30 finished up 1.92%. Meanwhile, in the U.K. the FTSE 100 finished up 1.20%.
In Europe earlier, official data revealed that German industrial production rose 1.8% in April, beating expectations for a 0.2% decline and after a 1.2% increase the previous month.
Elsewhere, Germany's trade surplus expanded unexpectedly in April, widening to EUR17.7 billion from a EUR17.6 billion surplus the previous month.
Analysts were expecting the trade surplus to narrow to EUR17.2 billion in April.
Meanwhile in the U.K., official data revealed that the trade deficit narrowed more than expected in April, narrowing to GBP8.2 billion from a GBP9.2 billion deficit the previous month.
Analysts were expecting the trade deficit to narrow to GBP8.8 billion in April.
In a separate report, the Bank of England said its inflation expectations remained unchanged at 3.6%.