U.S. stock markets climbed on Friday following a stronger-than-expected jobs report, which eased concerns about a slowing economy. The rally was supported by gains in major technology stocks and a sharp rebound in Tesla shares after a dramatic plunge a day earlier.
Nonfarm payrolls grew by 139,000 in May, surpassing economists’ expectations of 130,000, according to a Reuters poll. April’s figure was revised down to 147,000. The unemployment rate held steady at 4.2%, aligning with forecasts.
“The market is clearly skittish about economic risks – but so far the data is holding on nicely,” said Seema Shah, chief global strategist at Principal Asset Management. “This is not a labor market which is starting to fall apart at the seams.”
In response to the jobs report, traders now expect the Federal Reserve to delay rate cuts until September, anticipating just one rate cut by the end of the year. The Fed’s next policy meeting is scheduled later this month.
Earlier this week, weaker data on private payrolls and services sector activity had stoked fears of an economic slowdown. However, optimism returned after White House trade adviser Peter Navarro confirmed that U.S. and Chinese officials would meet within the next seven days to address unresolved trade issues. President Donald Trump and Chinese President Xi Jinping had spoken on Thursday, easing tensions but leaving key decisions for future negotiations.
Wall Street has been buoyant recently. The S&P 500 and Nasdaq both recorded their largest monthly gains since November 2023 in May, driven by a more moderate tone from Trump on trade and upbeat corporate earnings.
By 11:36 a.m. ET, the Dow Jones Industrial Average was up 330.86 points (0.78%) at 42,650.60, the S&P 500 rose 51.23 points (0.86%) to 5,990.53, and the Nasdaq Composite gained 202.24 points (1.05%) to reach 19,500.69 — marking three-month highs for both indices.
Tesla shares jumped 5.5% after falling 15% on Thursday, following a public clash between Trump and Elon Musk, in which Trump threatened to cut off federal contracts to Musk’s companies. Other mega-cap tech stocks also performed well: Amazon rose 1.5%, and Alphabet advanced 2.6%.
Ten of the 11 major S&P 500 sectors posted gains, led by energy, which climbed 1.9%, and technology, which added 0.9%.
Broadcom dropped 3.6% after its revenue outlook disappointed investors. Lululemon sank 20.2% after slashing its annual profit forecast due to increased costs tied to Trump’s tariffs. DocuSign fell 18.5% following underwhelming first-quarter results.
On the NYSE, advancing stocks outpaced decliners by a 2.27-to-1 margin, while on the Nasdaq, the ratio was 2.77-to-1. The S&P 500 recorded 20 new 52-week highs and no new lows, while the Nasdaq Composite posted 62 new highs and 28 new lows.
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