S&P 500 in “broad bull market” as US employment surges

The S&P 500 rose 4.9 percent last week as it maintained a rally from its March low.

The advance last week was boosted on Friday by a report that US employment rose by 2.5 million in May.

That surge in employment has raised hopes for a V-shaped economic recovery.

Jan Hatzius, chief economist at Goldman Sachs, said that Friday’s “report marks the beginning of the labor market recovery in our view, and we expect the unemployment rate to fall further in June”.

Tom Porcelli, chief US economist at RBC Capital Markets, said that “a June payroll print at north of 10 million is a reasonable starting point for the conversation”.

Indeed, Edward Yardeni, president of Yardeni Research, told CNBC on Friday that the May employment report is a game changer for Wall Street.

“The economy may very well be catching up with the stock market rather than the stock market going off on its own,” he said. “It’s going to be a pretty broad bull market here.”