Bloomberg reported that U.S. stocks rallied, sending the Standard & Poor’s 500 Index to the highest level since May, after Labor Department data showed payrolls climbed more than forecast even as the jobless rate unexpectedly rose to a five-month high of 8.3%.

Bloomberg said equities gained as payrolls in July increased 163,000 following a revised 64,000 rise in June. Economists had projected a gain of 100,000.

Bloomberg also noted the Institute for Supply Management’s index of U.S. non-manufacturing businesses, which covers about 90% of the economy, rose to 52.6 in July, beating estimates.

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