Wall Street surges to new record

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Reassuring employment data helped the Dow Jones Industrial Index to end at a record for the 26th time this year.

The index rose 40.47 points to close at 13,668.11, buoyed by figures showing the biggest jobs growth in the US for two months.

The good news also helped the broader Standard & Poor's 500 index end 5.72 points higher at 1,536.34 - breaking records set in the tech boom of 2000.

Elsewhere takeover activity also helped drive shares higher.

"The current rebound in economic activity continues to challenge arguments that the housing downturn is poised to overwhelm the expansion," said Robert DiClemente at Citigroup.

Growth hopes

In recent months, experts have voiced concern about the health of the US economy as growth slowed to its weakest pace in four years - with the drop being blamed on a slump in the housing market and a widening trade gap.

But economists said the latest employment figures showing 157,000 jobs were created in May alongside data showing just a modest 0.3% rise in wage growth suggested inflation threats to the economy were easing.

"Today's moderately strong jobs report capped another week of indicators pointing to a healthy bounce in second quarter growth to above 3.0%," added Mr DiClemente.

As well as positive economic news the market was also buoyed by takeover and merger talk surrounding a number of firms including media group Dow Jones.

The Bancroft family - which controls the Wall Street Journal owner - has said it will look at a $5bn takeover bid from Rupert Murdoch's News Corporation as well as any forthcoming rival offers.