Stocks rise amid gloom
Wall Street shrugs off worst job figures since Depression
Traders on Wall Street remain bullish
Wall Street shrugged off the worst unemployment figures since the Great Depression as representatives from the US and China held talks aimed at reducing tensions amid the Covid-19 pandemic.
The government’s latest jobless claims figures were dire but came in slightly lower than anticipated.
About 20.5m US jobs were lost in April – almost equal to nearly every job created over the past decade gone in a single month. The unemployment rate rose to 14.7% both breaking post-World War II records.
Economists polled by Dow Jones expected 21.5 million jobs lost and an unemployment rate of 16%.
The Dow Jones Industrial Average rose 1.91% while the S&P 500 gained 1.69% and the Nasdaq Composite climbed 1.58%.
The Dow’s surge continued a rally started on Thursday after oil prices rebounded.
The tech-heavy Nasdaq erased its 2020 declines and turned positive for the year.
Investors were encouraged by the US-China talks and the US economy reopening soon. They were hopeful of strong revenue gains from tech stocks during the lockdown.
The London market was closed for the VE Day Bank Holiday.