US stocks climb as nearly 5-million jobs added in June

New York — US stocks climbed after better-than-estimated jobs data indicated an economic rebound from the sharpest contraction on record. US treasuries and the dollar fell.

The S&P 500 extended its weekly gain as a government report showed payrolls rose by 4.8-million in June after an upwardly revised 2.7-million gain in the prior month. The unemployment rate fell to 11.1%. Economic-sensitive companies, such as retailers and airlines, jumped. Tesla surged after reporting deliveries that beat the average analyst estimate.

The rebound in the labour market accelerated as broader reopenings spurred more hiring last month, though filings for unemployment benefits remained elevated last week as coronavirus infections picked up.

US daily cases topped 50,000 for the first time with increases in major states including Florida, Texas and California. Huge monetary and fiscal policy stimulus helped lower borrowing costs and kept the financial system liquid in a time of stress, while propelling the stock market higher.

The share of S&P 500 Index members with a 14-day relative strength index above 70 — seen by some traders as overbought — is a little more than 1%. That compares to 44% at the start of June when the equity benchmark reached its highest of the pandemic era.

Adding to the bull case — the index bounced off a key support level at 3,000 to start the week and remains above its 200-day moving average.

Some of the main moves in markets:

Stocks

• The S&P 500 advanced 1.2% as of 9.30am New York time
• The Stoxx Europe 600 index advanced 1.7%
• The MSCI Asia Pacific index advanced 1.3%

Currencies

• The Bloomberg dollar spot index dipped 0.1%
• The euro advanced 0.1% to $1.1265
• The yen weakened 0.2% to ¥107.69/$

Bonds

• The yield on 10-year US treasuries gained three basis points (bps) to 0.71%
• Germany’s 10-year yield fell less than 1bps to -0.40%
• Britain’s 10-year yield climbed 1bps to 0.217%

Commodities

• The Bloomberg commodity index advanced 0.2%
• West Texas Intermediate crude increased 1.4% to $40.38 a barrel
• Gold decreased 0.7% to $1,768 an ounce

Bloomberg