Stocks rise after jobs report

The Dow was up 0.8%, or about 200 points, in late-morning trading. That was well off its earlier highs of the day after the government reported that the US economy added 4.8 million jobs in June, bringing the unemployment rate down to 11.1%.

"These are impressive numbers that took people by surprise," said Todd Lowenstein, equity strategy executive of The Private Bank at Union Bank.

The S&P 500 and Nasdaq each rose nearly 1%, with the Nasdaq hitting a new all-time high. Big tech stocks Microsoft, Amazon and Netflix were all trading at new records.

Stocks are on track to close an abbreviated week of trading with solid gains. The US market is closed Friday in observance of the Independence Day holiday.

The Dow is up more than 3% this week, while the S&P 500 and Nasdaq have each gained more than 4%.

The Nasdaq is now up nearly 15% this year. The S&P 500 and Dow are still in the red for 2020, though, down 3% and 9% respectively.

Lowenstein said the key to further market gains will be whether or not the economy continues to gain momentum.

Some experts are concerned the "sugar high" from stimulus checks could fade and consumers may start to spend less. New outbreaks of Covid-19 cases in Florida, Texas, Arizona and other states also have the potential to derail the rebound on Main Street and Wall Street.

"The reopening process should drive more job creation, but if the restarting efforts stall out on a second wave, gains in leisure and hospitality and other consumer sectors could easily fade," Lowenstein said.

Tesla continued its meteoric rise as well, surging 8% to a new peak above $1,200 a share. Tesla also announced Thursday that it produced more than 82,000 vehicles in the second quarter and delivered nearly 91,000 cars -- mostly its more affordable Model 3 and Model Y.

Elon Musk's electric car company has now soared nearly 200% this year. Tesla is worth over $225 billion, more than blue chip companies Coca-Cola and Disney as well as many other stocks in the Dow and S&P 500.

Shares of Big Pharma leader Pfizer and Germany's BioNTech also continued to rally one day after the two drug companies announced "encouraging" data from an early study of a Covid-19 vaccine that the two companies are developing.

And the broader market enjoyed solid gains Thursday, with all eleven major sectors of the economy rising following the jobs news.

But the latest market strength is unlikely to change the Federal Reserve's current stance on the economy.

The Fed has slashed rates to zero and launched trillions of dollars in stimulus efforts to help support the economy and market. It seems to be working,

"This rally is understandable considering what the Fed has done. It's the main driver of all the market action," said Patrick Leary, chief market strategist and senior trader with Incapital.

Still, others are expressing more caution. Even though the economic data is improving, the huge market rebound from the March lows may make it more difficult for stocks to keep soaring.

"The easy money from the recovery has already been made. We'll get more upside but it won't be at the same pace," said Troy Gayeski, co-chief investment officer of SkyBridge. "It could get bumpier, more volatile and much choppier."