U.S. stocks surged on Friday, buoyed by a recovery in Tesla shares and optimism following the release of the closely-watched monthly jobs report.
As of 09:35 ET (13:35 GMT), the Dow Jones Industrial Average was up 320 points (0.8%), the S&P 500 gained 60 points (1%), and the NASDAQ Composite advanced 215 points (1.1%).
Labor Market in the Spotlight
Investors focused on the Labor Department’s nonfarm payrolls report, which offered further insight into how President Trump’s tariff-driven economic policies may be affecting employment.
The U.S. added 139,000 jobs in May, down from April’s revised 147,000 but above the 126,000 forecast. April’s figure was previously reported at 177,000, while March’s number was revised down by 65,000 to 120,000.
The federal workforce shrank by 22,000, reflecting efforts by the Trump administration to streamline the government workforce. Since Trump began his second term in January, federal employment has declined by 59,000 jobs.
Despite the stronger-than-expected May figure, the downward revision for April could prompt the Federal Reserve to revisit rate cut discussions, having kept rates steady since December.
Earlier this week, Kansas City Fed President Jeff Schmid voiced concerns about inflationary pressures stemming from Trump’s sweeping tariffs. His comments reinforced the expectation that the Fed will maintain its current 4.25%–4.5% rate range, but the labor data may open the door to potential cuts later in the year.
Tesla Rebounds Amid Conflicting Reports of Trump-Musk Call
Tesla stock rebounded Friday, recovering from a sharp drop the day before after Politico reported that White House aides had scheduled a call between Trump and CEO Elon Musk for later in the day.
However, Reuters disputed the report, citing a White House source who claimed no such call was planned.
The conflict follows a heated social media exchange that wiped out approximately $150 billion from Tesla’s market capitalization on Thursday. Trump threatened to revoke government contracts with Musk’s companies, including SpaceX, while Musk continued to attack Trump’s “big beautiful” tax bill, which had sparked their feud.
Tesla’s sharp Thursday losses erased most of its recent gains, with the stock now down nearly 25% in 2025, amid broader challenges such as falling EV sales.
Corporate Movers: Broadcom, Lululemon, DocuSign
In corporate news:
- Broadcom (NASDAQ: AVGO) shares dipped after its strong Q3 revenue forecast failed to meet investor expectations tied to AI-driven growth.
- Lululemon (NASDAQ: LULU) fell after the athletic apparel brand revised down its FY2025 earnings outlook, citing pressure from trade tariffs.
- DocuSign (NASDAQ: DOC) slumped after the company missed expectations on billings growth for the first quarter.
Oil Prices Poised for Weekly Gain
Crude prices edged higher on Friday, buoyed by labor data and tightening supply expectations, putting oil on track for its first weekly gain in three weeks.
As of 09:35 ET, Brent crude dipped 0.5% to $65.67 a barrel, while WTI crude climbed 0.6% to $63.75. Both contracts are expected to end the week higher, following two consecutive weekly declines.
