Wall Street Rallies on Strong U.S. Jobs Report/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Wall Street posted strong gains Friday after a better-than-expected U.S. jobs report showed continued economic resilience. The S&P 500, Nasdaq, and Dow all rose more than 1%, buoyed by tech stocks and a market optimistic about potential tariff reductions. Treasury yields also climbed amid investor confidence.
Stock Market Rally After Jobs Report Quick Looks
- S&P 500 gained 1.2%, posting a second straight weekly win.
- Dow Jones rose 555 points, boosted by broad-based sector gains.
- Nasdaq climbed 1.3%, powered by tech stocks including Nvidia and Apple.
- Tesla rebounded 3.6% after steep losses linked to the Trump-Musk fallout.
- 139,000 jobs added in May; employment data exceeded expectations.
- Trump’s tariff war continues to rattle some sectors, especially retail.
- Lululemon stock plunged 19.4%, citing tariff-related cost concerns.
- Treasury yields rose, with the 10-year at 4.47%, signaling confidence.
Deep Look: Wall Street Climbs After U.S. Job Market Shows Strength
NEW YORK — U.S. markets surged Friday morning after a reassuring jobs report showed that while hiring slowed in May, the labor market continues to demonstrate economic resilience amid global uncertainties and trade tensions.
The S&P 500 rose 1.2%, marking its second consecutive weekly advance and inching closer to its all-time high. The Dow Jones Industrial Average jumped 555 points (1.3%), while the Nasdaq composite also rose by 1.3%, with tech stocks leading the charge.
Broad Gains Across the Market
Every sector in the S&P 500 moved upward in Friday’s trading session. Leading the rally were technology shares, which carry the most weight in the index.
- Apple Inc. rose 1.9%, continuing its recent momentum.
- Nvidia, a bellwether in the AI and chip space, climbed 1.6%.
- Tesla surged 3.6%, rebounding from the previous day’s steep decline as investor jitters over the Trump-Musk social media feud appeared to subside.
Solid Jobs Report Calms Recession Worries
The Department of Labor reported that U.S. employers added 139,000 jobs in May—down from April’s revised 147,000 but still above many forecasts. The unemployment rate held steady at 4.2%, reinforcing the view that the U.S. economy remains sturdier than expected in the face of protectionist trade policies.
Despite fears of an economic slowdown due to tariffs and global supply chain disruptions, consumer spending and business investment continue to support job creation.
Economists have noted that hiring appears to be moderating rather than collapsing, giving hope that the Fed’s goal of a “soft landing” may be feasible after aggressive interest rate hikes in 2022 and 2023.
Tariff Tensions Still Cast a Shadow
However, uncertainty surrounding President Trump’s on-again, off-again tariff policies is keeping markets volatile.
One of Friday’s biggest losers was Lululemon, which dropped 19.4% after lowering its profit outlook. The yoga apparel company cited higher import costs due to tariffs and growing competition from new athletic wear brands.
Lululemon joins a growing list of companies—from airlines to tech firms—that are warning investors of potential hits to profitability if tariff pressures persist.
Market Context: Global and Treasury Activity
Treasury yields moved higher, with the 10-year yield climbing to 4.47% from 4.39% the day prior. The 2-year yield rose to 4.00%, reflecting expectations that the Federal Reserve will maintain higher interest rates for longer if inflation persists.
This increase in yields signals a more optimistic economic outlook among bond investors, who appear to be betting on growth despite global headwinds.
Globally, Asian markets were mixed, reflecting regional uncertainty, while European indices posted modest gains, buoyed by the U.S. data.
Investor Takeaway
Friday’s market movement reflects the balancing act investors are trying to navigate. On one hand, solid job growth and consumer spending show that the U.S. economy is holding firm. On the other, political volatility, ongoing trade disputes, and corporate earnings warnings continue to pose risks.
Hope for a resolution to Trump’s tariff battles—particularly with China and European partners—remains a key driver behind the recent stock market rebound. The S&P 500, now within 2.1% of its record high, reflects a fragile but hopeful investor sentiment.
You must Register or Login to post a comment.