Wall Street Rallies on Strong Jobs Data; Nasdaq Hits 20,600, Networking and Software Stocks Lead Gains
The Nasdaq jumped 207.97 points (1%) to 20,601.10, the S&P 500 advanced 51.93 points (0.8%) to 6,279.35 and the Dow climbed 344.11 points (0.7%) to 44,828.53.
The Labor Department said non-farm payroll employment shot up by 147,000 jobs in June after jumping by an upwardly revised 144,000 jobs in May. The report also said the unemployment rate edged down to 4.1% in June from 4.2% in May. The unemployment rate was expected to inch up to 4.3%.
The ISM said its services PMI rose to 50.8 in June from 49.9 in May, with a reading above 50 indicating growth. Networking stocks turned in some of the market's best performances, with the NYSE Arca Networking Index surging by 2.3% to a record closing high. Software stocks were considerably strong, as reflected by the 1.9% gain posted by the Dow Jones U.S. Software Index. Banking, retail and airline stocks was notably strong while housing stocks significantly moved downwards.
Asia-Pacific stocks turned in a mixed performance. Japan's Nikkei 225 Index inched up by 0.1% and China's Shanghai Composite Index edged up by 0.2%, while Hong Kong's Hang Seng Index fell by 0.6%. Meanwhile, the major European have all moved upwards while the French CAC 40 Index crept up by 0.6%, the U.K.'s FTSE 100 Index and the German DAX Index both climbed by 0.6%.
In the bond market, treasuries have seen continued weakness in reaction to the stronger than expected jobs data. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, has advanced 5.5 bps to 4.34%.
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