Stocks are in recovery mode after the latest jobs report beat expectations, while Tesla regained some of its losses.
U.S. stock indices rebounded on Friday, June 6, following stronger-than-expected jobs data. The Dow Jones rose 300 points, or 0.7%, while the S&P 500 gained 0.75%. At the same time, the tech-heavy Nasdaq climbed 0.97%, with major indices buoyed by encouraging figures on U.S. employment.
According to Friday’s report, U.S. employers added 139,000 new jobs, lower than the revised April figure of 147,000 but still ahead of expectations. Meanwhile, the unemployment rate held steady at a relatively low 4.2%. Overall, the report signaled that the U.S. job market remains resilient despite ongoing concerns over the trade war.
Nonfarm payrolls data is a key metric for the Federal Reserve, which maintains a dual mandate of supporting employment and keeping inflation low. The stronger-than-expected figures are likely to keep the Fed cautious about cutting interest rates, as inflation remains a concern.
Following the positive news on the job market, U.S. President Donald Trump once again launched an attack on the Fed. Trump urged Fed Chairman Jerome Powell to lower interest rates to stimulate the economy. “Go for a full point, Rocket Fuel!” Trump stated on social media.
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Tesla somewhat recovers from the Musk-Trump feud
Tesla shares recovered around 5% as traders viewed the sharp sell-off as a buying opportunity, following steep losses tied to the public feud between Elon Musk and Donald Trump. The tech CEO and former Trump ally had called for the president’s impeachment and claimed Trump was named in the Jeffrey Epstein files.
This public feud resulted in Tesla shares losing 14% on Thursday, and Musk’s personal wealth dropping by $34 billion. Later, Elon Musk signalled he would cool tensions with President Donald Trump, which Trump rejected, claiming Musk has “lost his mind.”
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