Stocks Rally as U.S.Jobs Report Exceeds Expectations
Wall Street closed the week on a high note, thanks to a robust U.S. jobs report. The Dow Jones Industrial Average jumped 443 points, or 1.05%, leading Friday’s gains.
The S&P 500 rose 1.03%, surpassing the 6,000 mark for the first time since February. The Nasdaq Composite climbed 1.2%, fueled by tech stocks’ recovery. For the week, the S&P 500 and Dow gained over 1%, while the Nasdaq saw a 2% increase.The U.S. economy added 139,000 jobs in May, exceeding the 125,000 forecast. The unemployment rate stayed at 4.2%, and wage growth was slightly better than expected. This suggests a resilient labor market despite trade tensions and political uncertainties.
President Trump, however, called for a full percentage point interest rate cut, criticizing Fed Chair jerome Powell. Yet, markets expect no rate cuts in June.
President Trump urged the Federal Reserve to cut rates by a full percentage point, criticizing Fed Chair Jerome Powell. However, the odds of a September cut fell from 74% to 62% following the jobs report. Trump also announced that U.S.-China trade talks will resume in London next week, led by treasury Secretary Scott Bessent.
Next week, investors will focus on inflation data and the fed’s June policy meeting. The strong jobs report indicates a resilient labor market, despite ongoing trade and political uncertainties.
