Stocks rushed higher after a strong report on the U.S. job market eased Wall Street's worries about a possible recession. The S&P 500 jumped 1.5% Friday, while the Dow soared 701 points. The rally brought the S&P 500 nearly 20% above a low hit in October. It's on the edge of entering a new bull market. The rally built after a report showed unexpectedly strong hiring last month. At the same time, increases for workers’ pay slowed. That could mean the economy remains strong enough to avoid a recession without adding too much upward pressure on inflation.

Customers of Venmo, PayPal and CashApp should not store their money with those apps for the long term because the funds may not be covered by deposit insurance. That's according to a warning from the Consumer Financial Protection Bureau Thursday. The alert comes several weeks after the failure of Silicon Valley Bank, Signature Bank and First Republic Bank. Those institutions experienced bank runs after fearful customers with uninsured deposits pulled their money en masse. Money stored on a payment app is not being held in a traditional bank account. So, if there is an event similar to a bank run with the payment apps, those funds may not be protected.

The International Monetary Fund says that debt-stricken Sri Lanka, which declared bankruptcy last year, is showing signs of economic improvement but its recovery still faces challenges. Sri Lanka declared bankruptcy in April 2022 and said it was suspending repayment of its foreign debt. It reached an agreement with the IMF in March on a nearly $3 billion bailout program over four years. IMF deputy managing director Kenji Okamura concluded a visit to Sri Lanka, where he met with the country's top leaders and officials. He said he welcomed Sri Lankan authorities’ “strong commitment to implement their ambitious economic program, which is supported by the IMF.”

Asian stock markets are following Wall Street higher ahead of an update on the U.S. jobs market. This comes after Federal Reserve officials reignited hopes they might skip another interest rate hike this month. Shanghai, Tokyo, Hong Kong and Seoul advanced Friday. Oil prices strengthened. Wall Street’s benchmark S&P 500 index rallied 1% after data showed manufacturing and retail activity weakening following rate hikes to rein in surging inflation. That added to hopes the Fed might decide to postpone or scale back more planned increases. The U.S. Senate gave final legislative approval to raise the amount the government can borrow and avert a possible debt default.

The latest round of corporate earnings is leaving Wall Street with a confounding sense of relief and lingering anxiety. Companies are in the midst of an “earnings recession,” meaning profits have contracted for two straight quarters, starting with a 4.6% drop at the end of 2022. Although profits fell less last quarter, the relief on Wall Street is being tempered by predictions for lingering pain.

Sri Lanka’s Central Bank has reduced its interest rates for the first time since the island nation declared bankruptcy last year. Stern fiscal controls, improved foreign currency income and help from an International Monetary Fund program has resulted in inflation slowing faster than expected. The Central Bank said in a statement that the lending and deposit interest rates have been reduced by 250 basis points to 14% and 13% respectively. The headline inflation stood at 35.3% in April and was reduced to 25.2% in May. It is expected to reach single-digit territory by the the third quarter.