U.S. stocks posted huge gains at the start of trade Friday after the Labor Department's May nonfarm payrolls report showed the U.S. economy adding millions of jobs in May against expectations of further job cuts. The Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +1.44% rose 726 points, or 2.8%, to 27,003, the S&P 500 index /zigman2/quotes/210599714/realtime SPX +1.05% gained 61 points, or 2% to trade around 3,174 and and the Nasdaq Composite index /zigman2/quotes/210598365/realtime COMP +0.66% advanced 85 points, or 0.9% to 9,701. The U.S. economy created 2.5 million jobs in May and the unemployment rate fell to 13.3%, versus expectations for 7.25 million job losses at a 19% unemployment rate, according to a MarketWatch poll. The report showed large gains in jobs at bars and restaurants, retail, construction and manufacturing underscoring that states across the U.S. are lifting restrictions on economic activity as the COVID-19 health crisis abates in parts of the country. The data run counter to other measures of unemployment including, jobless claims numbers released Thursday, which showed the number of workers claiming unemployment has fallen only slightly from its post-pandemic peak.
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Dow surges 700 points after jobs report shows surprise jump in payrolls