The stock market rallied on Friday, with the Dow Jones Industrial Average climbing over 400 points and the S&P 500 touching the 6,000 level for the first time since February. The surge was driven by a solid jobs report that exceeded expectations and eased concerns about an imminent economic slowdown. The U.S. payrolls increased by 137,000 in May, outperforming 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’s showing that the labor market is holding up very well despite some slowing growth trends.”
Earlier in the week, various data had signaled a potential economic slowdown, raising questions about the impact of ongoing tariff negotiations and the upcoming Federal Reserve meeting.
However, the positive jobs report helped alleviate these concerns. President Donald Trump announced that trade talks between the U.S. and China are set to resume in London on Monday, June 9, 2025.
Market rallies driven by strong jobs
Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and U.S. Trade Representative Jamieson Greer will meet with Chinese representatives. Trump stated, “The meeting should go very well.”
Despite the market’s upward movement, some challenges remain. Brown-Forman, the alcohol maker, faced its worst week since 1987, with shares dropping more than 25% in 2025.
Deutsche Bank also warned that declining U.S. immigration could have a more negative impact on the economy than tariffs. In other news, Broadcom shares fell more than 4% on Friday despite topping Wall Street’s estimates, and President Trump called on Federal Reserve Chair Jerome Powell to cut interest rates by a full percentage point. Omada Health made its Nasdaq debut at $23 per share, following an initial public offering priced at $19.
Overall, Friday’s market performance reflects optimism spurred by robust job data and easing trade tensions. However, investors will be closely watching upcoming economic data and trade negotiations for further market direction.
