President Trump on Friday promised a "rocketship" rebound from the coronavirus pandemic, suggesting 2021 could be one of the "best years" for the USA economy after the better-than-expected May jobs report.
However, as it has for the past two months, the Labor Department said the jobless rate was likely three points higher due to errors in how workers described their job status. The Market was right.
In doing so, Trump broke a federal rule prohibiting the executive branch from commenting on the jobs report within an hour of its release, instead tweeting within minutes of its release, at 8:33 a.m. ET, in order to take credit. Nonfarm payrolls rose by 2.509 million jobs after a record plunge of 20.687 million in April. "The near-20m payrolls fall since February, and near quadrupling of the unemployment rate from 3.5pc surpasses anything from the Volcker rate-tightening of the late 1970s/early 80s, and chimes with earlier estimates of 25pc in the 1930s".
"These improvements in the labor market reflected a limited resumption of economic activity that had been curtailed in March and April due to the coronavirus (Covid-19) pandemic and efforts to contain it", the Labor Department said in a release.
US stocks jumped at the open on Friday after the jobs report showed a surprise drop in the USA unemployment rate, lending weight to hopes of a faster economic rebound from a pandemic-driven slump.
The decline in initial claims means the wave of layoffs caused by businesses closures ordered in mid-March to stop the spread of COVID-19 are slowing.
A hairstylist cuts a customer's hair at The Parlor in Napa, Calif., on May 27, 2020.
In May, 2.5 million jobs were added, according to the Bureau of Labor Statistics, appearing to add momentum to Trump's strategy of reopening the economy - a key to his reelection hopes - after much of it was shut down amid the pandemic.
More Info Released on Carl Crawford's Arrest
The incident apparently happened one week before a child and a woman drowned at Crawford's home in Houston. The former Major League Baseball star allegedly eventually unloaded the gun and grabbed her by the neck.
Stocks register gains on cautious hopes of economic recovery
That raises optimism that Friday's more comprehensive jobs report from the USA government may also not be as bad as feared. Treasury prices remained under pressure, as the benchmark 10-year Treasury yield advanced to 0.826% from 0.761% Wednesday.