Stock Market Today: Stocks Rally on Jobs Report, Trump-Musk Feud Cools Off

US stocks surged on Friday, with the S&P 500 (GSPC) surpassing the 6,000 level, supported by a stronger-than-expected May jobs report. The positive labor data boosted investor sentiment, pushing the Dow Jones Industrial Average (DJI) up by 1%, while the tech-heavy Nasdaq Composite (IXIC) gained 1.1%. The rally also followed signs that the heated feud between Tesla CEO Elon Musk and President Donald Trump was cooling off, bringing some stability to Tesla’s stock price after a major drop earlier in the week.

The May jobs report showed the US economy added 139,000 jobs, above the expected 126,000, with unemployment holding steady at 4.2%. Despite the modest slowdown in job growth, the data provided optimism about the labor market’s resilience amidst ongoing trade uncertainties.

Market Movers:

• Tesla (TSLA): Shares rebounded by 6% on Friday, recovering some of the losses from the previous session. The stock steeply declined on Thursday, driven by the public fallout between CEO Elon Musk and President Trump. Investor optimism rose after both parties backed off from their earlier heated rhetoric, signaling a potential easing of tensions.
• Lululemon (LULU): The stock took a significant hit, falling over 20%, after the company issued a warning that its earnings would be negatively impacted by a challenging macroeconomic environment. Lululemon revised its full-year earnings outlook lower, sparking concern among investors about potential future headwinds.
• DocuSign (DOCU): Shares of DocuSign dropped 18%, following the company’s announcement that it was lowering its full-year revenue guidance. Despite a share repurchase plan being introduced, the negative outlook led to significant selling pressure in the stock.
• Circle (CRCL): Circle’s stock continued its meteoric rise, climbing another 36% on Friday, following a strong market debut. After a successful IPO, the stablecoin issuer saw its shares soar, reflecting growing investor interest in digital assets and crypto market optimism.
• Broadcom (AVGO): Broadcom shares declined more than 3%, underperforming the broader semiconductor market. Despite strong revenue growth, the company's outlook for the next quarter fell short of analyst expectations, dampening investor sentiment in the stock.

Jobs Report: Labor Market Shows Resilience

The US economy added 139,000 nonfarm payrolls in May, beating the consensus estimate of 126,000. The unemployment rate remained unchanged at 4.2%, signaling that the labor market is holding steady, despite the ongoing impacts of trade tariffs. While the jobs report showed a slight slowdown in hiring, it still indicated a resilient labor market, with the economy managing to weather the effects of recent policy changes.

The report will likely affect the Federal Reserve’s approach to interest rates, especially with concerns about inflationary pressures. Investors will now be closely watching the Fed’s next moves, especially in light of President Trump’s repeated calls for rate cuts.

Musk-Trump Feud Eases, Tesla Stock Recovers

Tesla stock saw a sharp rebound on Friday, rising by 6% after Elon Musk and President Trump appeared to de-escalate their ongoing public feud. The spat had led to significant volatility in Tesla’s stock, which had lost over $150 billion in market value due to their conflict. However, signs of a cooling in their exchange allowed investor confidence to return.

Although the feud had weighed heavily on Tesla, there is optimism that the relationship between Musk and Trump could return to a more constructive dynamic. This has lifted Tesla’s stock back up after the heavy losses earlier in the week.

S&P 500 Nears 6,000 After Positive Economic Data

The S&P 500 surged past the 6,000 level, marking its highest point since February. The rally was fueled by the stronger-than-expected jobs report, which further lifted investor sentiment. The broad-based index had struggled in recent months but has now gained about 20% from its April lows, following positive trade developments and signs that the US economy is more resilient than previously feared.

Investor optimism about the economic outlook was also bolstered by President Trump’s efforts to ease trade tensions, including his recent rollbacks of tariff plans. The combination of better-than-expected economic data and a potential cooling of trade hostilities has paved the way for the market’s positive movement.

Looking Ahead

As we look to the coming weeks, investor focus will remain on trade developments, particularly between the US and China. Any progress on a potential trade deal could provide additional support for the market, while a resurgence in trade tensions could lead to renewed volatility. Additionally, investors will closely watch upcoming data on inflation and consumer sentiment, which will offer insights into how the economy is managing under the current policy landscape. The labor market, while showing resilience, is also slowing, and any signs of a more pronounced slowdown could shift market sentiment.