US STOCKS-Jobs report lifts market, volatility index at lowest since '07
* May payroll report shows pace of hiring remains solid
* Indexes extend recent rally, on track for strong week
* Hertz Global falls, to restate financial results
* Indexes up: Dow 0.5 pct, S&P 0.4 pct, Nasdaq 0.5 pct (Updates to afternoon session)
By Angela Moon
NEW YORK, June 6 (Reuters) - U.S. stocks rose on Friday, with major indexes extending a rally that has taken them to repeated records, after the May payrolls report provided the latest confirmation that economic conditions were improving.
The CBOE Volatility index VIX, Wall Street's so-called fear gauge, fell to its lowest level since February 2007. The VIX, which tends to rise when volatility increases or the market drops, fell 5.6 percent to 11.03 and was on track for its biggest daily percentage decline since May 21. It has been on the decline for months and is well below its historical average of 20, which some see as a sign that investors are ignoring concerns that could derail gains.
The day's gains were broad and led by cyclical sectors, which outperform in times of economic expansion. Energy shares were the day's biggest gainers, up 0.8 percent, followed by financials, up 0.7 percent. The only S&P 500 sector that fell on the day was healthcare, which is considered a defensive group.
About 217,000 jobs were added in May, slightly fewer than expected, while the unemployment rate held steady at 6.3 percent. This is the first time job growth has topped 200,000 for four consecutive months since January 2000. Continuación...