U.S. stocks advanced on Friday, boosted by a stronger-than-expected jobs report, helping Wall Street notch a second straight winning week.
All 11 sectors in the S&P 500 posted gains, pushing the index closer to its all-time high. After recovering from a decline two months ago, the benchmark index is now within 2.3% of its record.
S&P 500: Gained 61.06 points (1%) to close at 6,000.36
Dow Jones Industrial Average: Rose 443.13 points (1%) to 42,762.87
Nasdaq Composite: Added 231.50 points (1.2%) to finish at 19,529.95
Tech stocks led the rally, with major players like Nvidia up 1.2% and Apple climbing 1.6%. Tesla rebounded 3.7%, recouping some of Thursday’s losses sparked by a social media spat between Elon Musk and Donald Trump.
Circle Internet Group, the issuer of a major cryptocurrency, surged 29.4%, extending its explosive 168% gain from its NYSE debut on Thursday.
Solid Jobs Data Eases Worries—For Now
The U.S. added 139,000 jobs last month, a slowdown but still a healthy sign amid the uncertainty created by President Trump’s ongoing trade disputes. Despite concerns about tariff impacts, the labor market remains relatively strong.
Wall Street edges up as Trump’s metal tariffs kick in
Chris Zaccarelli, CIO of Northlight Asset Management, commented, “Everything seems to be operating smoothly for now, but we haven’t yet seen the full impact of the tariffs.”
While the U.S. government also faces potential setbacks from the Trump-Musk feud, many businesses are already feeling the tariff squeeze. Lululemon Athletica shares plunged 19.8% after the yoga apparel brand slashed profit forecasts, citing rising costs from tariffs and stiff competition from emerging labels.
Lululemon is one of many companies warning that increased costs and cautious consumer behavior due to tariffs could hurt future earnings.
Trade Hopes Fuel Market Recovery
Investor optimism that Trump will ease tariffs if trade deals are reached has been a key driver behind the market’s recent rebound. Talks with China resume Monday in London as U.S. officials meet with a Chinese delegation for further negotiations.
Tariffs are already impacting imports, exports, and raw material prices—particularly steel—raising the possibility of more significant economic effects if duties increase further.
Economic Headwinds and Fed Policy
The U.S. economy contracted in Q1, and recent data from the Institute for Supply Management indicates both manufacturing and services sectors also shrank last month. The OECD has revised its forecast for U.S. growth in 2025 down to 1.6%, from 2.8% in 2024.
The Federal Reserve remains cautious, keeping its benchmark interest rate unchanged as it watches inflation and tariffs. The Fed is walking a fine line: while cutting rates might stimulate the economy, it could also drive inflation higher—especially with rising import costs.
After three rate cuts in late 2024, the Fed has held rates steady this year and is expected to do so again at its June meeting. Still, many traders believe the central bank will need to cut rates later in 2025 to support the slowing economy.
Asian shares shoot higher as US stocks inch toward their records
Bond Market Moves
Treasury yields rose sharply:
10-year yield climbed to 4.51% (from 4.39%)
2-year yield increased to 4.04% (from 3.92%)
The two-year yield often reflects expectations around Fed policy decisions.
Global Markets
European markets ended mostly higher on Friday, tracking Wall Street’s positive momentum.