U.S. stocks extend gains on U.S. May jobs report; Dow up 0.11%

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Investing.com - U.S. stocks carried Friday's gains into Monday, as investors continued to cheer news that the U.S. economy added more than 200,000 new nonfarm payrolls in May for a fourth consecutive month.

At the close of U.S. trading, the Dow 30 rose 0.11%, the S&P 500 index rose 0.09%, while the NASDAQ Composite index rose 0.34%.

The Volatility S&P 500 index, which measures market volatility, was up 2.70% at 11.02.

The U.S. Labor Department reported Friday that the economy added 217,000 in May, close to market expectations for a 218,000 increase, after a 282,000 rise in April, whose figure was revised down from a previously estimated 288,000 gain.

The private sector added 216,000 jobs last month, exceeding expectations for a 210,000 gain, which drew market applause.

The report also showed that the U.S. unemployment rate remained unchanged at 6.3% last month compared to expectations for a rise to 6.4%.

U.S. stocks also applauded for a second day the European Central Bank's decision to cut its benchmark interest rate on Thursday to a record-low 0.15% from 0.25%, cut its deposit rate to -0.1% and said it will support the banking sector to spur lending via targeted long-term credit injections.

Many U.S. companies are significantly exposed to European markets, and lower borrowing costs in Europe sent stocks rising in the U.S.

The yield on Spain's 10-year bonds fell to 2.6% on Monday, falling below their U.S. equivalent which was yielding 2.61%. The yield on Ireland's 10-year bonds fell to a euro-era record low of 2.61% while the yield on German 10-year bonds fell to their lowest against their U.S. counterpart since 2005.

Leading Dow Jones Industrial Average performers included Walt Disney Company (NYSE:DIS), up 1.02%, United Technologies Corporation (NYSE:UTX), up 1.00%, and General Electric Company (NYSE:GE), up 0.94%.

The Dow Jones Industrial Average's worst performers included Intel Corporation (NASDAQ:INTC), down 0.94%, McDonald's Corporation (NYSE:MCD), down 0.58%, and Microsoft Corporation (NASDAQ:MSFT), down 0.54%.

European indices, meanwhile, ended the day higher.

After the close of European trade, the DJ Euro Stoxx 50 rose 0.33%, France's CAC 40 rose 0.17%, while Germany's DAX rose 0.21%. Meanwhile, in the U.K. the FTSE 100 rose 0.24%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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