Wall Street surges after a strikingly upbeat May jobs report

United States stocks soared on Friday after a strikingly upbeat May jobs report unexpectedly provided the clearest evidence yet that the US economy is headed for a quick recovery from the coronavirus pandemic.

The Dow Jones Industrial Average rose 829.16 points, or 3.15 percent, to close at 27,110.98. The S&P 500, a proxy for the performance of US retirement and college savings accounts, gained 81.58 points, or 2.62 percent, to settle at 3,193.93. The Nasdaq Composite Index added 198.27 points, or 2.06 percent, to close at 9,814.08.

All three major US stock indexes advanced 2 percent or more with the S&P 500 and the Dow Jones Industrial Average now 5.7 percent and 8.3 percent below their respective closing records.

The S&P 500 is now 1.1 percent below its year-to-date break-even level.

The Nasdaq also breached its all-time closing high reached in February, but pared its gains to end the session a bit below it.

The US economy added an astounding 2.5 million jobs last month, rebounding from April’s record 20.7 million drop and unexpectedly pushing the unemployment rate down to 13.3 percent.

The numbers were a shock to most analysts, who were expecting millions more job losses.

US President Donald Trump has largely pinned his re-election campaign on his stewardship of the economy.

On Friday, Trump tweeted: “Really Big Jobs Report. Great going President Trump (kidding but true)!”

Later, during a White House briefing, Trump told reporters: “Today is probably, if you think of it, the greatest comeback in American history.”

Analysts also weighed in on the shocking numbers and signs of quick recovery.

“The numbers are a huge surprise to the upside,” said Michael Arone, chief investment strategist at State Street Global Advisors in Boston.

“It would suggest a further confirmation the economy is coming back online,” Arone added. “This is a strong signal that the effects are temporary and that the economy is improving.”

Airline companies, which have been among the hardest hit by the coronavirus pandemic, surged, with the ARCA Airlines index jumping 5.7 percent.

Boeing Co also surged 11.5 percent on hopes of a pickup in air travel a day after American Airlines Group Inc and United Airlines said they would boost their US flight schedules in July.

And shares of luxury retailer Tiffany & Co jumped 6.5 percent after Reuters news agency reported LVMH’s $16.2-bn takeover deal was back on track.

The S&P 500 has posted 26 new 52-week highs and no new lows; the Nasdaq Composite Index recorded 89 new highs and three new lows.

Market analysts are now looking to the US Federal Reserve, which is scheduled to hold a monetary policy meeting next week during which the latest jobs data will almost certainly be discussed.