Stocks end difficult week on solid ground as nonfarm payrolls rose faster than expected in May.
U.S. stocks ended a turbulent week on a positive note after the Labor Department said job creation rose much faster than expected last month.
The large-cap S&P 500 Index (NYSEARCA:SPY) gained 1.1% to close at 2,734.62. Nine of 11 primary sectors contributed to the rally, with technology shares leading the way.
The Dow Jones Industrial Average (NYSEARCA:DIA) rose 219.37 points, or 0.9%, to 24,635.21.
Meanwhile, the technology-driven Nasdaq Composite Index (NYSEARCA:QQQ) surged 1.5% to finish at 7,554.33, its highest since March.
A measure of 30-day volatility known as the CBOE VIX (NYSEARCA:VXX) declined sharply on Friday, reaching its lowest level in a week. Wall Street’s volatility gauge declined more than 12% to 13.57.
Employers added 223,000 workers to payrolls last month, blowing past forecasts of 188,000, the Department of Labor reported Friday. The April tally was revised lower to reflect a gain of 159,000 from the previously reported 164,000.
The unemployment rate fell to a new multi-decade low of 3.8%, although this came at the expense of workforce participation.
Average hourly earnings also picked up faster than expected, rising 0.3% on month and 2.7% annually, official data showed.
The Final Word: Nonfarm payrolls confirmed that the U.S. economy is on solid ground despite a slow start to the year. A pickup in wages suggests inflationary pressures are building, which should give the Federal Reserve the scope it needs to raise interest rates later this month.