The US markets ended higher with gains of over one percent on Friday after a weaker-than-expected jobs report, which supported the case for the Federal Reserve to ease interest rates in the near future, amid fears that the US economy is decelerating as trade tensions between the US and counterparts Mexico and China persist. The Labor Department's closely watched monthly jobs report showed a substantial slowdown in the pace of US job growth in the month of May. The report said non-farm payroll employment rose by 75,000 jobs in May after soaring by a downwardly revised 224,000 jobs in April. Street had expected employment to increase by about 185,000 jobs compared to the jump of 263,000 jobs originally reported for the previous month. The much weaker than expected job growth came a modest increases in professional and business services, leisure and hospitality and healthcare jobs were partly offset by a drop in retail employment.
Meanwhile, the report said the unemployment rate came in at 3.6 percent in May, unchanged from the previous month and in line with street estimates. Besides, consumer credit in the US jumped by much more than anticipated in the month of April, according to a report released by the Federal Reserve. The Fed said consumer credit surged $17.5 billion in April after climbing by an upwardly revised $11.0 billion in March. Street had expected consumer credit to rise by $12.0 billion compared to the $10.3 billion increase originally reported for the previous month. Revolving credit, which largely reflects credit card debt, showed a notable rebound, advancing by $7.0 billion in April after falling by $2.0 billion in March.
Dow Jones Industrial Average surged 263.28 points or 1.02 percent to 25983.94, Nasdaq rose 126.55 points or 1.66 percent to 7742.10 and S&P 500 was up by 29.85 points or 1.05 percent to 2873.34.
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