After showing a strong move to the upside at the start of trading on Friday, stocks have continued to perform well over the course of the morning. The major averages have climbed firmly into positive territory, with the Nasdaq reaching its best intraday level in over ten years.
Much of the strength on Wall Street stems from the release of a much better than expected report on the employment situation in the month of January, with the report showing stronger than expected job growth and an unexpected drop by the unemployment rate.
Adding to the positive sentiment, the Institute for Supply Management released a report showing that its index of activity in the service sector jumped to an eleven-month high in January.
While considerable strength has emerged in a variety of sectors, networking stocks are turning in some of the best performances in late morning trading. Infinera (INFN) has helped to lead the sector higher after reporting better than expected fourth quarter results.
Financial stocks are also posting particularly strong gains amid optimism about the outlook for the economy. Significant strength is also visible among housing, electronic storage, steel, and airline stocks.
Meanwhile, gold stocks continue to buck the uptrend by the broader markets amid a pullback by the price of the precious metal.
The major averages have pulled back off their highs for the session in recent trading but continue to post strong gains. The Dow is up 128.86 points or 1 percent at 12,834.27, the Nasdaq is up 37.59 points or 1.3 percent at 2,897.27 and the S&P 500 is up 15.24 points or 1.2 percent at 1,340.78.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.