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 The Dow and S&P 500 advanced in a broad rally that has spurred
repeated records since last week. The CBOE Volatility index VIX, a
measure of investor apprehension, tumbled 8.3 percent to its lowest
level since February 2007.
In Europe, peripheral markets outperformed as investors bet that
banks in the euro zone would benefit the most from the ECB's
measures announced on Thursday.
The U.S. nonfarm payrolls report showed a solid pace of hiring in
May, returning employment to its pre-crisis level. The economy has
recouped the 8.7 million jobs lost during the recession after adding
just under 217,000 jobs in May. The unemployment rate held steady at
6.3 percent.
The report was within expectations, but "the main thing is that the
world's biggest economy is moving in the right direction and slowly
gathering momentum," said Marcus Bullus, trading director of MB
Capital.
Markets also were buoyed after the ECB cut interest rates, including
taking deposit rates for banks below zero, and pledged hundreds of
billions more euros in cheap funds for banks.
MSCI's all-country stock index rose 0.58 percent. The FTSEurofirst
300 index of top European shares rose 0.6 percent to close at
1,388.48.
The Dow Jones industrial average closed up 88.17 points, or 0.52
percent, to 16,924.28. The S&P 500 gained 8.98 points, or 0.46
percent, to 1,949.44, and the Nasdaq Composite added 25.172 points,
or 0.59 percent, to 4,321.399.
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For the week, the Dow rose 1.2 percent, the S&P gained 1.3 percent
and the Nasdaq 1.9 percent.
Benchmark 10-year Treasuries retreated, falling 3/32 in price to
yield 2.5950 percent.
The U.S. dollar rebounded as investors added to a well-worn pattern
of borrowing greenbacks to buy higher-yielding currencies after the
U.S. jobs data left few chances the Federal Reserve will deviate
from its course of removing monetary accommodation from a
strengthening economy.
The euro gyrated after the data, initially selling off but then
rising briefly to a two-week high of $1.3677. It settled back to
$1.3641, down 0.12 percent.
U.S. crude oil futures rose as the U.S. jobs report bodes well for
future oil demand.
Brent fell 18 cents to $108.61 a barrel. U.S. crude rose 18 cents to
settle at $102.66 a barrel.
(Reporting by Herbert Lash; Editing by Meredith Mazzilli, Dan
Grebler and Leslie Adler)
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