Payrolls rise by 2.5 million; stocks explode higher.

What a surprise! The greenback advanced, stocks rocketed higher, and bonds were sold-off heavily (yields spiked) as May's labor market report shocked positively.

Moments ago the BLS shocked markets when it reported that, contrary to a week after week of millions in initial jobless claims, and in line with the much more optimistic ADP report, not only did May payrolls not drop by the 7.5 million expected drop, but actually soared by 2.5 million, crushing expectations, and indicating that already in May when the country was under widespread lockdowns, jobs came flying back.

Additionally, just as shocking is that the unemployment rate, which was expected to surge to a record 19.1% in May from 14.7% in April, actually declined in May to 13.3%.

Finally, after months of miserable news, we got something very positive, and so far, markets are loving it. US 10-year yield rose 10% to trade just shy of the critical 1% handle, while the EURUSD pair was trying to drop below the 1.13 threshold.

Precious metals were pummeled, and gold dropped below 1,690 USD, with silver losing nearly 3% and trading at around 17.30. Oil advanced, and the WTI benchmark was 5% stronger on Friday, changing hands at 39 USD.
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