Source: CNBCTV18
US stocks surged on Friday, with the S&P 500 closing above the 6,000 mark for the first time since February. The rally followed a better-than-expected monthly jobs report and growing optimism that tensions between President Trump and Elon Musk may be easing. The Dow Jones Industrial Average rallied more than 400 points, or about 1.2%, while the S&P 500 added about 1% to close at the 6,000 mark. The tech-heavy Nasdaq Composite also gained 1.2%.
Oil rose as stronger-than-expected US jobs data eased concerns about an economic slowdown that would crimp demand, spurring algorithmic traders to reduce short positions, as per a Bloomberg report. West Texas Intermediate climbed almost 2% to settle above $64 a barrel, notching the largest weekly gain since November, it added.
Despite Friday’s bounce, Brown-Forman shares are poised to notch their biggest weekly decline in almost four decades. Shares of the alcohol maker popped more than 2% in Friday’s session, but were still down by more than 15% this week. If that holds, it would mark the Jack Daniel’s parent’s worst weekly performance since 1987, when shares plunged 18.5% in a week.
The US consumer appears to be remaining rather resilient amid macroeconomic uncertainty, according to UBS. “The overall U.S. consumer is holding up reasonably well,” equity strategist Sunny Mehra wrote in a note dated Thursday, adding that the year-over-year trends for April and May were better than those for February and March.
Retail investors seem to have spotted an opportunity in the sudden feud between U.S. President Donald Trump and his former ally, Tesla CEO Elon Musk, scooping up shares of the electric car maker as they tumbled on the acrimonious standoff. Self-directed individual investors scooped up a net $201.3 million of Tesla stock on Thursday after buying and selling $2.6 billion, Vanda Research estimated, making Tesla the day’s second most-actively purchased stock by such investors.
Porsche has no plans to shift any part of its production process to the U.S., a spokesperson said on Friday, dismissing a Bloomberg report saying the company was considering such a move to mitigate the effects of tariffs. The luxury carmaker, like Volkswagen’s Audi, does not produce vehicles in the U.S., leaving it heavily exposed to tariffs at a time when it faces the challenges of falling demand, fierce competition in China and slow uptake of its electric models.
Broadcom shares dropped over 4% in midday trading Friday, even after the company reported better-than-expected quarterly results. For its fiscal second quarter, the chipmaker posted adjusted earnings of $1.58 per share on revenue of $15 billion, slightly above analyst forecasts. Estimates from LSEG had projected earnings of $1.56 per share on $14.99 billion in revenue.
President Donald Trump announced on Friday that discussions on trade between the US and China will take place next week in London.
Treasuries slumped after stronger-than-expected US job and wage growth prompted traders to trim bets that the Federal Reserve will cut interest rates this year. The Friday selloff lifted yields across maturities by as much as 12 basis points, led by shorter-dated tenors more sensitive to Fed rate changes. The benchmark 10-year note’s rate rose 10 basis points to 4.49%, and yields across the spectrum once again exceeded 4%.
DocuSign shares sank 18% after the electronic signing software firm lowered its full-year billings guidance and announced a $1 billion share repurchase program.
Shares of the EV maker rebounded as much as 6% midday Friday as CEO Elon Musk and President Trump stopped posting insults at each other on social media, a sign of a deescalation of their public feud, which wiped out $150 billion in value from the EV maker during the prior session.
Lululemon stock fell more than 20% in midday trading on Friday after the activewear company warned profits would take a hit amid what it called a “dynamic macro-environment.” Lululemon cut its full-year earnings per share outlook to a range of $14.58-$14.78 from $14.95-$15.15.
In a renewed call for aggressive monetary easing, former US President Donald Trump on Friday pressed Federal Reserve Chair Jerome Powell to cut interest rates by a full percentage point. The demand came shortly after the release of the May nonfarm payrolls report, which showed job gains surpassing expectations.
Taking to Truth Social, Trump criticised the Fed’s current stance, contrasting it with monetary policy moves in Europe. “‘Too Late’ at the Fed is a disaster! Europe has had 10 rate cuts, we have had none. Despite him, our Country is doing great,” he posted. “Go for a full point, Rocket Fuel!”
Wall Street climbed sharply by midday on Friday, with the Dow jumping 300 points and the S&P 500 crossing the 6,000 mark, buoyed by a stronger-than-expected May jobs report showing 139,000 new payrolls and 4.2% unemployment. Shares of Petco, Tesla, Circle, and Lululemon were among the biggest movers.
On Friday, Microsoft opened at a new record high, overtaking AI chip leader Nvidia to become the world’s largest company by market value. The software giant rose nearly 1% in early trading, surpassing $47 per share and reaching a market cap of over $3.5 trillion—exceeding Nvidia’s $3.46 trillion valuation. Year to date, Microsoft has gained 12%, compared to Nvidia’s approximate 6% increase. The company has fully bounced back from its early April lows following President Trump’s announcement of a reciprocal tariff policy, which was later rolled back.
Crypto firm Gemini said on Friday it had confidentially filed for a U.S. initial public offering, as digital asset companies move to tap into renewed investor risk appetite amid improving market conditions.
As he heads toward retirement at month’s end, Philadelphia Federal Reserve President Patrick Harker says interest rate cuts remain a possibility this year amid a very uncertain economic landscape, as he also flagged worries about the quality of economic data policymakers use to make their decisions.
China has granted temporary export licenses to rare-earth suppliers of the top three U.S. automakers, two sources familiar with the matter said, as supply chain disruptions begin to surface from Beijing’s export curbs on those materials.At least some of the licenses are valid for six months, the two sources said, declining to be named because the information is not public. It was not immediately clear what quantity or items are covered by the approval or whether the move signals China is preparing to ease the rare-earths licensing process, which industry groups say is cumbersome and has created a supply bottleneck.
Stablecoin issuer Circle Internet’s (CRCL) shares climbed 41% to hit a record high on Friday, extending a stellar run after a blowout market debut on the New York Stock Exchange a day earlier. The New York-based company’s stock touched as much as $117.45, more than triple its offer price of $31 and valuing the company at $30.5 billion on a fully diluted basis. The blockbuster listing also reinforced expectations that the IPO market was regaining its momentum after being stifled by tariff-driven volatility. (Source: Reuters)
Morgan Stanley remains bullish on Tesla despite the recent public feud between CEO Elon Musk and President Trump. The firm maintains an Overweight rating with a $410 price target, highlighting Tesla’s growth potential beyond electric vehicles. Analysts point to Tesla’s expanding presence in AI-related areas like data, robotics, energy storage, manufacturing, and space technology, which offer greater profit opportunities than its traditional EV business, currently under pressure. They believe Tesla’s current challenges are well known, but its future prospects are underestimated. Following the spat with Trump, Tesla’s stock rebounded, recovering from a sharp sell-off that wiped out over $150 billion in value.
On Friday, Microsoft (MSFT) opened at a new record high, overtaking AI chip leader Nvidia (NVDA) to become the world’s largest company by market value. The software giant rose nearly 1% in early trading, surpassing $47 per share and reaching a market cap of over $3.5 trillion—exceeding Nvidia’s $3.46 trillion valuation. Year to date, Microsoft has gained 12%, compared to Nvidia’s approximate 6% increase. The company has fully bounced back from its early April lows following President Trump’s announcement of a reciprocal tariff policy, which was later rolled back.
President Trump urged the Federal Reserve to cut interest rates, criticising Fed Chair Jerome Powell for being “too late” despite strong US economic performance. However, a solid May jobs report—139,000 new nonfarm payrolls added and a steady 4.2% unemployment rate—diminished hopes for a June rate cut. While a weak ADP report earlier sparked speculation, the Labor Department’s data showed the labor market remains resilient, though slowing. Investors now see little chance of easing until September. The Fed has kept rates steady in 2025 after a 1% cut in late 2024 amid uncertainties linked to Trump’s policies.
Tesla shares climbed as much as 4.5% early Friday as investors hoped for signs of de-escalation in the high-profile fallout between CEO Elon Musk and former US President Donald Trump—a feud that had contributed to a staggering $150 billion wipeout in Tesla’s market value earlier this week.
Reports from Politico and Reuters initially suggested a phone call between the two was scheduled for Friday, sparking optimism that the rift might be resolved. However, conflicting updates quickly emerged, with Reuters later denying that any such conversation was on the agenda.
Despite the uncertainty, the prospect of a thaw in the Trump-Musk spat was enough to trigger a modest rebound in Tesla’s stock price after days of pressure.
US stocks rallied on Friday with the S&P 500 (GSPC) breaching the 6,000 level following a moderate beat on the monthly jobs report and rising investor hopes of a cooldown in the acrimonious feud between President Trump and Elon Musk.
The Dow Jones Industrial Average (DJI) rose more than 500 points, or 1.3%, while the S&P 500 added 1% to touch its highest level since February. The tech-heavy Nasdaq Composite (^IXIC) also gained 1%.
Tesla (TSLA) shares rose as CEO Musk and Trump moved to cool tensions. Musk backed off his threat to decommission the Dragon spacecraft used by NASA after Trump threatened his government contracts. However, the White House tamped down reports of a potential “peace call” between the two.
U.S. money market funds saw a sharp rise in inflows for the week ending June 4, driven by investor caution amid increased U.S. tariffs on steel imports, ongoing trade tensions between President Donald Trump and China, and an important jobs report due on Friday. According to LSEG Lipper data, investors poured a net $66.24 billion into money market funds—the largest weekly inflow since December 2024. Meanwhile, riskier equity funds experienced net outflows of $7.42 billion, up from $5.39 billion the previous week. Small-cap funds saw $2.99 billion in withdrawals, the highest since April, while multi-cap, mid-cap, and large-cap funds faced outflows of $2.13 billion, $1.05 billion, and $962 million, respectively.
The US labour market showed resilience in May despite President Trump’s new tariff policies, adding 139,000 jobs—surpassing economists’ expectations of 126,000. The unemployment rate remained steady at 4.2%. In April, the US economy had added 177,000 jobs with the unemployment rate unchanged at 4.2%, but recent revisions lowered April’s job growth to 147,000. Overall, revisions from March and April indicate the US labor market added 95,000 fewer jobs than initially reported.
Circle (CRCL) stock surged again in premarket trading Friday following its explosive IPO debut on Thursday. Shares climbed 14%, reaching around $94 by 8:00 a.m. ET. The stablecoin issuer’s stock rocketed 168% from its initial $31 offering price on its first day, closing with a market value exceeding $16 billion.
U.S. stock futures rose on Friday as tensions between President Donald Trump and Tesla CEO Elon Musk showed signs of easing, bringing some relief to global markets. Investors are now closely watching the upcoming U.S. jobs report, which could offer key insights into the health of the world’s largest economy. Dow Jones futures were up 0.4%, while S&P 500 and Nasdaq 100 futures also gained 0.4% each. The May nonfarm payrolls report, due at 8:30 a.m. ET (6:00 p.m. IST), is expected to show 125,000 new jobs added, signaling a slowdown in hiring. Unemployment is forecast to hold steady at 4.2%. This report comes after a string of weak U.S. economic data raised concerns of stagnation, potentially influencing the U.S. Federal Reserve’s stance on interest rates. Indian investors and markets are also keeping a close watch, as U.S. economic trends often have ripple effects on emerging economies like India.
Tesla is the worst-performing large-cap stock this year, thanks to declining electric vehicle demand, Chief Executive Elon Musk’s political controversies over his ties to far-right groups, and now, his public feud with President Donald Trump. Tesla shares slumped on Thursday, after Trump on social media threatened to cut off government contracts with Elon Musk’s companies, following Musk’s sharp criticism of the president’s signature tax and spending bill on his X social media platform. The market capitalization of Tesla Inc has fallen 29.3% to $917 billion so far this year, the biggest drop among big companies in the world.
The May jobs report is expected to show hiring slowed while the unemployment rate held flat. The data’s release will come as investors closely watch for any further signs of slowing in the US labor market. The Bureau of Labor Statistics data is slated for release at 8:30 a.m. ET on Friday. Economists expect nonfarm payrolls to have risen by 125,000 in May and the unemployment rate to have held steady at 4.2%, according to consensus estimates compiled by Bloomberg.
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