Strong U.S. jobs report powers stocks to weekly gain

Fri Jul 8, 2016 4:39pm EDT
 
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By Dion Rabouin

NEW YORK (Reuters) - Wall Street stocks rose on Friday, recovering all the losses sustained after Britain's surprise vote last month to leave the European Union, and equities around the globe also jumped after data showed U.S. job growth in June accelerated more rapidly than even the most optimistic forecasts.

Friday's gains, which saw the S&P 500 index finish a hair below its record closing high, were enough for U.S. equities and MSCI's gauge of markets around the world to end the week in the green.

The U.S. economy added 287,000 jobs last month, according to the Labor Department, smashing the consensus forecast of 175,000. It was the highest total in eight months and wiped out expectations that the Federal Reserve might cut U.S. interest rates in the coming months.

The Dow Jones industrial average .DJI rose 250.86 points, or 1.4 percent, to 18,146.74, the S&P 500 .SPX gained 32 points, or 1.53 percent, to 2,129.9 and the Nasdaq Composite .IXIC added 79.95 points, or 1.64 percent, to 4,956.76.

"What this report does is it assuages fears about the economy losing momentum," said Quincy Krosby, market strategist at Prudential Financial in Newark, New Jersey. "That’s been weighing on the minds of investors."

European stocks also surged after the data's release, with Germany's DAX stock index .GDAXI rising 2.24 percent to lead the region's bourses. Europe's FTSEuroFirst 300 index of top shares rose 1.49 percent .FTEU3.

MSCI's all-country world stock index .MIWD00000PUS rose 1.03 percent.

Oil prices initially rose more than 1 percent after the strong jobs data, but oversupply concerns resurfaced with data showing the U.S. oil rig count rose by 10 this week.   Continued...

 
Traders work on the floor of the New York Stock Exchange (NYSE) shortly after the opening bell in New York, U.S., July 6, 2016.  REUTERS/Lucas Jackson