Stocks in the U.S. finish with gains due to positive jobs data, optimistic China sentiments, and a rebound in Tesla's share price.
Newness expressions the stock market's upward swing on June 6
New York - US stocks concluded higher on June 6, finding solace in a much better-than-predicted jobs report that eased economic concerns, while Tesla rebounded, recouping some losses from a drastic decline the day before.
The S&P 500 surpassed the 6,000 mark for the first time since February 21, propelled by gains in tech shares.
Investors cheered the news of President Donald Trump mentioning that three individuals from his cabinet will encounter Chinese representatives in London on June 9 to talk about a trade deal.
"The market will chase the trade deal carrot whenever it's accessible. The issue is whether any actual deal gets done," said Jamie Cox, managing partner at Harris Financial Group.
On June 5, Trump and Chinese leader Xi Jinping conversed after weeks of trade tensions and a dispute over critical minerals. They left crucial issues unsolved for future negotiations.
In the early trading session, US data unveiled a 139,000 job growth in May following an uncertainly revised 147,000 increase in April. Economists surveyed by Reuters anticipated job growth of 130,000.
The unemployment rate remained unchanged at 4.2 percent, matching forecasts.
Following the report, traders bet that Federal Reserve policymakers have little reason to rush on rate cuts. They anticipate the Fed to hold back until September to cut rates, with just one more cut in sight by December, according to interest rate futures. Central bank policymakers will meet later in June.
"We expect the Fed to remain on hold at this meeting, and think a weakening in the labor market data is necessary for the Fed to continue its easing cycle," said Lindsay Rosner, head of multi-sector fixed income investing at Goldman Sachs Asset Management.
Weaker-than-predicted private payrolls numbers and surveys on the services sector this week fueled concerns that trade uncertainty could slow the economy.
US equities soared in May, with the S&P 500 index and the tech-heavy Nasdaq achieving their largest monthly percentage gains since November 2023, thanks to the softening of Trump's harsh trade stance and upbeat earnings reports.
On June 6, the S&P 500 touched its highest in over three months, and stayed below record highs touched in February by a slight margin. The Dow index also reached a three-month high.
The Dow Jones Industrial Average jumped 442.88 points, or 1.05 percent, to 42,762.62, the S&P 500 gained 61.02 points, or 1.03 percent, to 6,000.32, and the Nasdaq Composite advanced 231.50 points, or 1.20 percent, to 19,529.95.
The S&P increased 1.5 percent for the week, the Dow rose 1.17 percent, and the Nasdaq climbed 2.18 percent.
Shares of Tesla increased 3.8 percent after plunging about 15 percent on June 5 during Trump's public feud with Elon Musk, including threats to end government contracts with Musk's companies.
Other megacap companies also rose. Amazon surged 2.7 percent, and Alphabet gained 3.25 percent.
Wells Fargo rose by 1.9 percent as ratings firm S&P Global upgraded its outlook on Wells Fargo to "positive" from "stable." Early this week, the U.S. bank was released from a $1.95 trillion asset cap.
Broadcom shares fell 5 percent after the networking and custom AI chipmaker's quarterly revenue forecast didn't meet the expectations of investors.
Lululemon shares plummeted by 19.8 percent as the sportswear maker cut its annual profit target, citing higher costs from Trump's tariffs.
Advancing issues outnumbered decliners by a 2.14-to-1 ratio on the NYSE. There were 173 new highs and 34 new lows on the NYSE.
On the Nasdaq, advancing issues outnumbered decliners by a 2.52-to-1 ratio.
The S&P 500 posted 20 new 52-week highs and no new lows while the Nasdaq Composite recorded 86 new highs and 38 new lows.
Volume on US exchanges was relatively light, with 14.5 billion shares traded, compared to an average of 17.8 billion shares over the previous 20 sessions. REUTERS
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Finance professionals are optimistic about the potential of a trade deal, as Trump mentioned three cabinet members will meet Chinese representatives to discuss it. This could positively impact businesses and investing in the stock market, particularly in technology sectors as the S&P 500 and the Nasdaq have achieved significant growth recently. However, analysts warn that obstacles remain, and any actual deal may take time to materialize.
