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Tech drives Wall Street higher - European Stocks close higher following U.S. jobs report

European markets close higher following U.S. jobs report

European stocks closed higher on Friday as investors digested a key U.S. jobs report.

The pan-European Stoxx 600 index finished the final trading session of the week up about 0.4%, with most major bourses and sectors pushing into positive territory.

Traders, weighing up the link between inflation pressures and the reopening of U.S. businesses, were focused on the U.S. jobs report Friday.

 

S&P 500 rises on Friday to close out winning week near a record high

U.S. stocks climbed on Friday as the key May jobs report showed solid gains, boosting confidence in the economic comeback.

The S&P 500 rose about 0.9% to 4,229.89, sitting less than 0.2% from its all-time high reached last month. 

The Dow Jones Industrial Average gained 179.35 points to 34,756.39. 

The Nasdaq Composite outperformed with a nearly 1.5% rally to 13,814.49.

U.S. stocks climbed on Friday, led by technology shares, after a tepid U.S. monthly jobs report relieved investor concerns the Federal Reserve might rein in monetary stimulus soon.

The major averages all registered modest gains for the week. The blue-chip Dow and the S&P 500 advanced about 0.7% and 0.6%, respectively, on the week for their second straight positive week. The tech-heavy Nasdaq gained just shy of 0.5% this week for its third winning week in a row.

The U.S. economy added 559,000 jobs in May, the Labor Department said on Friday. The number came in slightly lower than an estimate of 671,000 from economists surveyed by Dow Jones, but still showed a healthy rebound in the labor market. It’s an improvement from the upwardly revised 278,000 payrolls added in April.

The unemployment rate fell to 5.8% from 6.1%, which was better than the estimate of 5.9%. Many believe the jobs report, while solid, is not strong enough to trigger the Federal Reserve to dial back its bond buying program.

The jobs number is “goldilocks for risk,” said John Briggs, global head of strategy at NatWest Markets. It’s “not too hot to bring in the Fed and not too cold to worry about the economy.”

Reference: CNBC