The stock market surged on Friday, with the Dow Jones Industrial Average jumping 443.13 points, or 1.05%, to close at 42,762.87. The S&P 500 also climbed, surpassing the 6,000 mark for the first time since late February, closing at 6,000.36. The Nasdaq Composite rallied 1.20%, ending the day at 19,529.95.
The market’s rise was supported by a positive jobs report from the Bureau of Labor Statistics, which reported an increase of 150,000 nonfarm payrolls for May, surpassing the Dow Jones forecast of 125,000. The unemployment rate remained steady at 4.2%. Anthony Saglimbene, chief market strategist at Ameriprise, commented, “The nonfarm payrolls report came in better than expected.
It indicates that the labor market is holding up well despite some slowing growth trends.”
Despite improved market sentiments, some consumers continue to face pressure from cumulative inflation. Sunny Mehra, an equity strategist at UBS, noted that while upper-income consumers remain robust, lower-income consumers are experiencing financial strain. However, he mentioned that spending has not dropped off significantly.
S&P 500 surpasses February milestone
In corporate news, shares of Brown-Forman, the maker of Jack Daniel’s, experienced their steepest weekly decline since 1987 due to disappointing earnings for the fiscal fourth quarter. The company cited an “exceptionally challenging macroeconomic environment.”
President Donald Trump announced that U.S.-China trade talks are scheduled for next week in London, expressing optimism about the outcome.
Deutsche Bank raised concerns that declining immigration might pose a more significant threat to the U.S. economy than tariffs, potentially resulting in slower labor force growth. On Wall Street, 20 stocks reached new 52-week highs on Friday, with several achieving fresh all-time highs, including Apple and Microsoft. Broadcom shares saw a decline despite outperforming earnings expectations, with analysts attributing the dip to overly high expectations but maintaining a positive outlook on the company’s AI-driven growth potential.
Omada Health made its Nasdaq debut at $23 per share, up from its initial public offering price of $19. President Trump reiterated his call for Federal Reserve Chair Jerome Powell to cut interest rates by a full point, despite the robust jobs report. The S&P 500 is on track to close the week more than 1% higher, bolstered by gains in various sectors including technology and consumer goods.
However, utilities and consumer staples have weighed down the index.
