Jobs report boosts indices on Wall Street

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WALL STREET FINISHES UP

by Stephen Culp

NEW YORK (Reuters) – Surprise employment rebound in the United States last month, a sign that the US economy crippled by the coronavirus is expected to recover much faster than expected, was greeted with fervor on Friday on the New Stock Exchange York, where the Nasdaq Composite index closed at a record level.

The Dow Jones index gained 3.15% or 829.16 points to 27,110.98.

The broader S & P-500 took 81.58 points, or 2.62%, to 3,193.93.

The Nasdaq Composite, up 2.06%, closed at 9,814.08 points after crossing during its session its highest historic level reached in February.

Wall Street, which entered a bear market in early March for fear of the economic fallout from the pandemic, is now fueled by the hope of a rapid recovery in economic activity.

The surprise and spectacular rebound in employment in May in the United States more than comforted stakeholders in their forecasts.

“I don’t think anyone had anticipated this,” said Michael Arone, investment strategist at State Street Global Advisors, a Boston-based firm. “This confirms what many people have suggested: that the effects of the pandemic on the job market were temporary and that jobs would come back once the economy recovered.”

The Nasdaq is the first of the three main indices of the New York Stock Exchange to cross a brand new in session since the beginning of the crisis.

The S&P is now only down less than 1% from the start of the year, while it was down 32% at the end of March. The index is 5.7% from its historic high and the Dow Jones at around 8%.

Values, airlines have notably benefited from this optimism from investors.

Boeing jumped 11.5% thanks to the anticipation of an upcoming acceleration in air traffic, American Airlines and United Airlines having announced that they would increase the number of their flights to the United States in July.

Tiffany took 6.5% after reports from Reuters that the luxury giant LVMH was renouncing to renegotiate the takeover offer of the American jeweler announced in November, amounting to 16.2 billion dollars (14.3 billion euros).

(French version Jean-St├ęphane Brosse)

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