New York: U.S. stocks closed sharply higher on Friday, driven by a better-than-expected jobs report and renewed hopes for progress in U.S.-China trade talks. A recovery in Tesla shares also helped lift sentiment, capping a strong week for equities.
The S&P 500 gained 61.02 points, or 1.03 per cent, to close at 6,000.32 — its first close above the 6,000 mark since February 21. The Dow Jones Industrial Average rose 442.88 points, or 1.05 per cent, to end at 42,762.62, while the tech-heavy Nasdaq Composite jumped 231.50 points, or 1.20 per cent, to 19,529.95.
Friday's rally came after U.S. Labour Department data showed nonfarm payrolls increased by 139,000 in May, surpassing the forecast of 130,000 jobs. The unemployment rate remained unchanged at 4.2 per cent, easing concerns about a slowdown in the U.S. economy.
The upbeat data tempered expectations of an imminent interest rate cut by the Federal Reserve. Traders are now pricing in a potential rate reduction no earlier than September, with only one cut likely by December, according to interest rate futures.
Investors were also buoyed by comments from President Donald Trump, who said three of his cabinet officials will meet with Chinese representatives in London on June 9 to discuss a possible trade deal. The announcement comes after weeks of tension between Washington and Beijing, and a recent call between Trump and Chinese President Xi Jinping.
“The market will chase the trade deal carrot any time it’s available,” said Jamie Cox, managing partner at Harris Financial Group. “The trick is whether any actual deal gets done.”
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Tesla shares (TSLA.O) rebounded 3.8 per cent on Friday after plummeting around 15 per cent the previous day amid public tensions between Trump and CEO Elon Musk. Trump had threatened to review government contracts involving Musk’s companies.
Other major technology and megacap stocks also advanced. Amazon rose 2.7 per cent, Alphabet climbed 3.25 per centcent, and Wells Fargo gained 1.9 per cent after ratings agency S&P Global upgraded its outlook on the bank to “positive” from “stable.”
However, Broadcom shares slipped 5% after the company’s quarterly revenue forecast failed to meet investor expectations. Sportswear maker Lululemon plunged 19.8 per cent as it cut its annual profit guidance, citing higher costs from Trump’s tariff policy.
Market breadth was strong, with advancing issues outnumbering decliners by a 2.14-to-1 ratio on the NYSE and 2.52-to-1 on the Nasdaq. The S&P 500 recorded 20 new 52-week highs with no new lows, while the Nasdaq posted 86 new highs and 38 new lows.
The market’s weekly performance reflected a positive tone: the S&P 500 added 1.5 per cent, the Dow rose 1.17 per cent, and the Nasdaq surged 2.18 per cent.
Despite relatively light volume, with 14.5 billion shares traded on U.S. exchanges versus a 20-day average of 17.8 billion, Friday’s gains underscored investor optimism heading into mid-June.
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