Dow jumps 700 points as US stocks soar on end to the debt ceiling fight and strong May jobs report

• The Dow soared 700 points to end the week as traders cheered the end of the debt ceiling fight.
• The Senate voted to send the bill to raise to country's borrowing limit for two years to Biden's desk.

US stocks soared on Friday, with markets feeling upbeat about the end of the debt ceiling showdown and a strong May payroll report.

The Dow Jones Industrial Average spiked 700 points, or more than 2%, climbing steadily through the session, while the Nasdaq and S&P 500 were each up over 1%.

The Senate late Thursday voted to send the bill that would raise the US borrowing limit for two years to President Joe Biden's desk to be signed. The move ends weeks of tense negotiations that brought the country to the brink of defaulting on some of its obligations. Treasury Secretary Janet Yellen had warned that the US would run out of cash in early June without raising the debt ceiling.

Meanwhile, on Friday morning, markets got a glimpse of the still red-hot labor market. Nonfarm payroll data for May showed that employers added 339,000 jobs last month, blowing past estimates of 180,000.

The strong reading could complicate the Federal Reserve's approach to fighting inflation, though it was tempered by an increase in the unemployment rate and slower wage gains.

Markets have been expecting the Fed to pause raising rates at the upcoming policy meeting this month, but a hot labor market could convince officials to maintain pressure to discourage any resurgence in inflation. As of Friday afternoon, fed fund futures were still showing about 70% odds that the Fed holds off on another rate hike, according to the CME FedWatch Tool.

Here's where US indexes stood at the 4:00 p.m. ET close on Friday:

• S&P 500: 4,282.37, up 1.45%
• Dow Jones Industrial Average: 33,762.76, up 2.12% (701.19 points)
• Nasdaq Composite: 13,240.77, up 1.07%

Here's what else is happening:

• Even the biggest winners of the surge in Nvidia's stock price are taking some chips off the table as the AI hype train goes into overdrive.
• Russia's foreign minster accused the West of "financial blackmail." The comment comes as the economic bloc known as the BRICS considers adding Saudi Arabia and Iran.
• Extreme bearishness means that stocks could be facing big gains. Bank of America said this week that when investors are this downbeat, there's upside coming. The bank said the S&P 500 could jump 16% in the coming year.

In commodities, bonds, and crypto:

• Oil got a boost from the strong US jobs data. West Texas Intermediate crude jumped 2.75% to $72.03 a barrel. Brent, the international benchmark, rose 2.85% to $76.40.
• Gold dipped by 1.5% to $1,966 an ounce.
• The yield on the 10-year US Treasury rose eight basis points to 3.69%.
• Bitcoin edged up 1.6% to $27,273.