New York (CNN Business)Investors breathed a huge sigh of relief following the May jobs report Friday. Stocks rallied as the numbers told a classic Goldilocksian, not too hot or too cold, story about the state of the economy.
The Dow was up more than 100 points, or 0.3%, in early trading. The S&P 500 rose 0.6% and the tech-heavy Nasdaq surged about 1.1%. Bond yields also edged lower and the dollar weakened — signs that investors aren’t too concerned about the economy overheating.
“There was a little bit of something for everyone in this report,” said Yung-Yu Ma, chief investment strategist with BMO Wealth Management. “It’s still indicative of a job market that’s growing strongly but not so strong that it’s raising concerns the Federal Reserve is going to have to pull back on stimulus.”
Fewer jobs were added than expected last month, but the numbers were stronger than April’s surprisingly weak gain. Read More
Fed chair Powell warns of 'profound challenges' posed by climate changeWhat’s more, the unemployment rate continued to edge lower and wages rose again, although not at a dramatic enough rate to make investors nervous about inflation.
“This is not a game changer for the Fed,” said Michael Rosen, managing partner and chief investment officer with Angeles Wealth. Rosen added that the jobs data also show that the economy is continuing to rebound at a solid clip, which will allay fears that consumer spending could cool now that the third round of stimulus checks from Washington is starting to wind down.