Stocks rise as surprise May jobs rebound boosts recovery hopes
Stocks opened with gains Monday morning after the surprisingly strong May jobs report boosted hopes of a quicker recovery from the coronavirus-driven economic collapse.
The Dow Jones Industrial Average opened with a gain of 250 points on Monday, rising nearly 1 percent. The S&P 500 index rose 0.3 percent, but the Nasdaq composite sank 0.3 percent.
Monday’s rise comes after the Department of Labor reported Friday that the U.S gained 2.5 million jobs on net in May due largely to 2.7 million workers returning from temporary layoffs or furloughs. The shock report defied economists predictions of another month of millions of job losses and propelled the stock market to a strong Friday close.
Economists and experts have warned that while the May jobs reversal is good news, the U.S. economy still faces several threats that can stunt a recovery from the COVID-19 economic downturn.
The unemployment ticked down to 13.3 percent, but still remains well above the peak of joblessness during the Great Recession. Black unemployment also rose 0.2 percentage points to 16.8 percent despite the national decrease in joblessness. Nearly 300,000 Americans also lost their jobs permanently in May, 15 million Americans remain on temporary layoffs, and the May jobs gain is but a fraction of the more than 20 million jobs lost since late March.