The S&P 500 Index closed up 1.03% on Friday, marking a 3-1/2 month high. The Dow Jones rose 1.05%, reaching a 3-month high, while the Nasdaq 100 increased by 0.99%. This rally was fueled by a better-than-expected May employment report, which showed a nonfarm payroll increase of 139,000, surpassing the 126,000 forecast, and the unemployment rate remained stable at 4.2%. Additionally, U.S.-China trade talks are set to resume on Monday in London.
Tesla shares rebounded by over 3% on Friday after a significant drop of 14% the previous day, following remarks from President Trump about ending government contracts with the company. In the broader market, chipmakers such as Marvell Technology rose over 4%, and energy stocks increased as WTI crude prices hit a 1-1/2 month high. Notably, Lululemon’s stock fell by over 19% after lowering its full-year EPS estimate.
The Cleveland Fed President expressed caution regarding adjusting interest rates amidst current economic uncertainties, while the markets are currently discounting a 0% chance for a rate cut at the upcoming FOMC meeting. In European markets, the Eurozone’s Q1 GDP was revised up to 0.6%, above expectations, while retail sales and German industrial production fell short of forecasts.
