(Boursier.com) — On Friday, Wall Street made significant gains, with major indices approaching their historical peaks. The sharp drop following “Liberation Day” on April 2 seems to have been digested by investors. The Dow Jones ended up 1.05% at 42,752 points , while the S&P 500 rose 1.03% to 6,000 points . The Nasdaq advanced 1.20% to 19,529 points . This bullish sentiment comes as operators welcomed the latest reassuring U.S. employment figures.
Investors are hopeful for a de-escalation of Sino-American tensions following a recent phone call between Presidents Donald Trump and Xi Jinping . Trump announced that three members of his administration would meet with a Chinese delegation in London to discuss a trade agreement . In a message on social media platform Truth Social , Trump noted that Treasury Secretary Scott Bessent , Commerce Secretary Howard Lutnick , and U.S. Trade Representative Jamieson Greer would participate in these discussions. He expressed optimism, predicting that “this meeting should go very well.”
Additionally, the markets continued to track the escalating feud between Trump and Elon Musk , who have publicly exchanged barbs through media outlets over the last 24 hours.
According to the U.S. Department of Labor , non-agricultural job creation for May exceeded expectations, landing at 139,000 , compared to a consensus of 130,000 . The previous month had seen a downward revision from an estimation of 177,000 to 147,000 . Private sector job creation reached 140,000 , better than the consensus of 120,000 , though slightly lower than the 146,000 recorded the previous month. The unemployment rate remained stable at 4.2% , while average hourly earnings rose more than anticipated, increasing 0.4% month-over-month and 3.9% year-over-year. The labor force participation rate stood at 62.4% .
The Federal Reserve is engaging in discussions regarding a potential interest rate cut , which would likely delight Trump, especially as the European Central Bank (ECB) has once again reduced its key rate to 2% , marking the eighth successive cut since June 2024. According to the FedWatch tool from the CME Group , the likelihood of the Fed maintaining the current rate at its next monetary meeting on June 18 is nearly 100% , though a 25 basis points cut could occur in September.
In a critical post on Truth Social, Trump took aim again at Federal Reserve Chairman Jerome Powell , commenting that it is “too late” for the Fed, and calling it a “disaster.” Highlighting that Europe has experienced ten rate reductions without any from the U.S., Trump urged Powell to lower rates by a full percentage point: ” Let’s go for a full-point cut ! Rocket Fuel!” He claimed that if Powell acted on his advice, interest rates would be significantly reduced, both short and long-term. Trump added that with minimal inflation, if it were to resurface, rates should be raised to counter it, stating, “It’s very simple!”
On the NYMEX , WTI crude oil climbed 1.9% , reaching $64.65 , while gold dipped 1.7% to $3,311 . The dollar index appreciated by 0.3% against a basket of reference currencies, and the yield on the 10-year T-Bond edged up to 4.47% , compared to 4.93% for the 30-year bond .
Market Updates
Tesla rebounded by 3.6% after a significant 14.3% plunge the previous day. The interaction between Musk and Trump continues to draw attention. A user on X remarked, “It’s a shame to see you both at odds. You are both better than this. Please take a step back for a few days.” Musk replied that this was “good advice,” yet maintained his stance regarding the deactivation of the Dragon spacecraft .
Bill Ackman , an ally to both Trump and Musk, suggested on X that they should reconcile for the country’s benefit. Musk acknowledged Ackman’s observation but hinted that reconciliation might be complicated amid threats from Trump to cut government contracts and vital subsidies linked to Musk’s ventures. The White House has purportedly arranged another call between Trump and Musk, further indicating the precarious nature of their relationship. Following the volatile exchanges, both men have accused each other of backtracking from previously held positions, escalating the discourse further.
Additionally, Broadcom saw a 5% drop despite exceeding quarterly expectations, while shares of DocuSign plunged 18.9% despite reporting stronger than expected earnings.
As the corporate landscape evolves, companies continue to navigate economic pressures and market fluctuations. From adjustments in forecasts to dynamic interactions among major players, the markets remain a complex field filled with rapid changes and opportunities.