US stocks rally with debt limit optimism, strong jobs figure

By Ovunc Kutlu

ISTANBUL (AA) - US stocks rallied on Friday, closing with gains as investors remained optimistic about the debt limit bill and stronger-than-expected job figures.

The Dow Jones soared 701 points, or 2.12%, to finish at 33,762 as the blue-chip index posted a gain of 2% for the week.

The S&P 500 jumped 61 points, or 1.45%, to 4,282. The index recorded a 1.8% increase this week.

The Nasdaq increased 139 points, or 1.07%, to end the session at 13,240. For the week, the tech-heavy index rose 2%.

The bill passed the House of Representatives with a vote of 314-117 late Wednesday and cleared the Senate with a vote of 63-36 late Thursday. It now goes to President Joe Biden's desk to be signed into law.

The legislation will suspend the $31.4 trillion cap on the federal government's borrowing limit through January 2025, and it will prevent the world's biggest economy to default on its debt obligations.

American economy added 339,000 jobs in May, coming much higher than market estimates of 180,000 gain. Job additions for April were revised up by 41,000 from 253,000 to 294,000, according to data from the Labor Department earlier.

With investors' optimism, the VIX volatility index, also known as the fear index, plummeted 6.8% to 14.58.

The 10-year US Treasury yield, meanwhile, jumped 2.9% to 3.697%.

The dollar index was up 0.5% to 104.04, while the euro decreased 0.5% to $1.0708 against the greenback.

Precious metals were in negative territory, with gold trimming 1.5% to $1,948 per ounce and silver falling 1.1% to $23.62.

Oil prices gained more than 2.7%, with global benchmark Brent crude at $76.42 per barrel and US benchmark West Texas Intermediate at $72.01.