Business Highlights

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US unemployment drops unexpectedly to 13.3% amid outbreak

WASHINGTON (AP) — The U.S. unemployment rate fell unexpectedly in May to 13.3% — still on par with what the nation witnessed during the Great Depression — as states loosened their coronavirus lockdowns and businesses began recalling workers. The government said Friday that the economy added 2.5 million jobs last month, driving unemployment down from 14.7% in April. After weeks of dire predictions by economists that unemployment in May could hit 20% or more, the news that the economy added a surprising 2.5 million jobs last month is evidence that the employment collapse most likely bottomed out in April, when the rate reached 14.7%.

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Wall Street’s rally zooms higher after surprise gain in jobs

NEW YORK (AP) — The S&P 500 jumped another 2.6% Friday after a report said the U.S. job market surprisingly strengthened last month, bolstering hopes that the worst of the recession may have already passed. Economists cautioned that it’s just one month of data and that many risks still loom on the long road to a full recovery. But the report gives some credence to the optimism that’s been building among stock investors that the economy can climb out of its current hole faster than forecast. That hope has been a big reason for the S&P 500’s rally of more than 40% since late March.

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Despite global reopening push, some jobs are gone for good

BANGKOK (AP) — Factories and stores are reopening, economies are reawakening — but many jobs just aren’t coming back. That’s the harsh truth facing workers laid off around the U.S. and the world, from restaurants in Thailand to cleaning workers in Kenya and car factories in France. New U.S. figures released on Friday showed a surprise drop in joblessness as some of those who were temporarily laid off returned to work. But it’s only a dent in the recent surge of unemployment, which is on a par with Depression-era levels. That means less money spent in surviving stores, restaurants and travel businesses, with repercussions across economies rich and poor.

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Reddit co-founder leaves board, urges black replacement

SAN FRANCISCO (AP) — Reddit co-founder Alexis Ohanian announced his resignation from the board of the social media site and urged the board to replace him with a black candidate. Ohanian implicitly linked his move to protests around the globe over the killing of George Floyd, who died in Minneapolis after a police officer pressed his knee against his neck for several minutes, even after he stopped pleading for air and became unresponsive. The entrepreneur, who is married to tennis star Serena Williams, said he made the decision for the sake of his daughter. He pledged to use future gains on his Reddit stock to “serve the black community.”

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US will allow limited flights by Chinese airlines, not a ban

WASHINGTON (AP) — The Trump administration is backing away from a threat to ban all flights to the U.S. by Chinese airlines. It will allow Chinese carriers to operate a total of two flights a week between the two countries. The move comes a day after China agreed to allow more inbound flights by foreign airlines. United Airlines and Delta Air Lines stopped flying to China earlier this year because of the coronavirus pandemic, but they want to resume those flights this month. Four airlines from China have continued flying to the U.S. Earlier this week, the Transportation Department threatened to stop all those flights no later than June 16.

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Twitter disables Trump campaign’s George Floyd video tribute

SAN FRANCISCO (AP) — Twitter has blocked a Trump campaign video tribute to George Floyd over a copyright claim. The move adds to tensions between the social media platform and the U.S. president, who is one of its most widely followed users. The company put a label on a video posted by the @TeamTrump account that said, “This media has been disabled in response to a claim by the copyright owner.” The video was still up on President Donald Trump’s YouTube channel. The clip is a montage of photos and videos of protest-related scenes set to gentle piano music and Trump speaking.

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US consumers shunned borrowing in April as economy shut down

WASHINGTON (AP) — U.S. consumer borrowing plunged in April as households fretted about the disruptions caused by the coronavirus pandemic and cut back on their use of credit. The Federal Reserve reported Friday that total borrowing fell by $68.8 billion, or 19.6%. That was the biggest one-month decline in percentage terms since the end of World War II. Borrowing in the category that includes credit cards fell by $58.3 billion, or 64.9%, a record decline in a series that began in 1968. Borrowing in the category that covers auto loans and student loans fell by $10.5 billion, or 4%.

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The S&P 500 rose 81.58 points, or 2.6%, to 3,193.93. The Dow Jones Industrial Average gained 829.16, or 3.2%, to 27,110.98, and the Nasdaq composite rose 198.27, or 2.1%, to 9,814.08. The Russell 2000 index of smaller-company stocks gained 55.09 points, or 3.8%, to 1,507.15.