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Stocks rise on strong May jobs report

With the May jobs report coming in higher than expectations, Yahoo Finance Live's Julie Hyman takes a look at the market's reaction.

Video transcript

JULIE HYMAN: And as we take a look at what's going on in the markets here, we've got stocks I'm looking at the two-day chart here just to show you the uptick that we saw in today's session, the leg up as we got the jobs numbers. Up a 1 and 3/4% over the past two days. And then if you take it to the one day here, we have that 3/4% of a increase.

We've been watching yields as well here. And we are seeing yields move up today. Not a huge gain though, up just about four basis points. And what does that mean? Yes, there is an outlook here that this report is perhaps more bullish for rates moving higher at the same time. We didn't see expectations change that much for what the Fed is going to do at its next meeting. So interesting there that still being priced in for a pause.

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Going to reset here to the sectors, which Brad checked on earlier. And we're looking at year-to-date. So don't want to shock people, as Brad put it earlier. We still have communication services and utilities. Utilities before was in the red. Now communication services as well. Materials, energy, consumer, discretionary, industrials, all up in pretty determined fashion here today.

Rachelle, as you watched the market action, as you took in the jobs numbers, what are some of your thoughts here now that we're what, about half hour into the session?

RACHELLE AKUFFO: I mean, even at the highest of the expectations, we're putting it at maybe 250,000 jobs added by some estimates. But for this blowout jobs report, 339,000. I mean, it really did leave a lot of people scratching their heads. But I mean, when you look at what the job market has been up against, you've got persistent inflation, over a year's worth of interest rate hikes, bank failures, recession fears.

To still come in with a number that strong, very impressive. I know we were also taking a look at labor force participation. Usually, this does tend to tick up when you see the unemployment rate go up as well as a lot more unemployed people are saying, look, maybe this is a good time for me to get back into the job market here. But that stayed steady unchanged at 62.6%.

And that really does build on some of the JOLTS data that we saw that really still speak to a still hot labor market. I mean, the JOLTS data showed 10.1 million job openings at the end of April. That's about 1.8 vacancies for every unemployed person. So still leaves the Fed with a lot of work to do here, potentially, if they're trying to hone in on that inflation data as well as seeing just on that slightly uptick that we're seeing now in that unemployment rate. They're now at 3.7%.

BRAD SMITH: Yeah. I would love to be a fly on the wall in Jerome Powell's house while he's sipping his green tea just getting a load of these numbers this morning here. A lot of work to be done for sure, Rachelle.