The unemployment rate counts only people who don't have a job and are looking for one. When you account for the spread between the reported and implied unemployment having just soared to a fresh 30 year high of 3.2%, the real employment rate is over 11% and probably a lot higher.

The government tracks unemployed people who have given up looking for work in the past year. But if they were still job-hunting, but hadn't found work, the unemployment rate would have actually been 8.9 percent last month.

And concerning the markets recent "rally"--it's worth noting that the DOW was at 3,000 in 1990, meaning, the market has grown almost 300% in the past 20 years and about 200% more than it did in the entire previous century. The market will continue to grow exponentially just as the population and the business community needed to serve that population grows.