(Reuters) – Wall Street stocks rose on Friday after the latest monthly jobs report pointed to strength in the U.S. economy and geopolitical tensions eased.
Government data showed that in May the U.S. economy added 223,000 nonfarm jobs and average hourly wages increased 0.3 percent, both topping economist estimates. The unemployment rate fell to an 18-year low of 3.8 percent. Data on construction spending and industrial production also pointed to accelerating economic growth.
Markets got a reprieve as Italy installed a coalition government, removing the risk of a repeat vote dominated by debate on whether the country would quit the euro.
Further calming geopolitical concerns, U.S. President Donald Trump announced the resumption of plans for a summit with North Korea’s leader Kim Jong Un on June 12.
“The Trump economy continues to work very, very well,” said Stephen Massocca, senior vice president at Wedbush Securities in San Francisco. “It’s good news for the market.”
The Dow Jones Industrial Average .DJI rose 219.37 points, or 0.9 percent, to 24,635.21, the S&P 500 .SPX gained 29.35 points, or 1.08 percent, to 2,734.62 and the Nasdaq Composite .IXIC added 112.22 points, or 1.51 percent, to 7,554.33.
The Cboe Volatility index .VIX, a barometer of expected near-term stock market gyrations, ended down at 13.46, its lowest closing level in a week.
For the week, the S&P rose 0.48 percent, the Dow lost 0.48 percent, and the Nasdaq gained 1.62 percent.
FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., May 18, 2018. REUTERS/Brendan McDermid
In the view of some investors, the strong economic