Stock prices in the United States experienced a positive movement on Friday because the strong May employment data reduced market doubts about economic slowing down. The S&P 500 experienced a 1% increase at the beginning of trading while the Dow Jones Industrial Average increased by 429 points or 1% and the Nasdaq composite rose by 1.2%.
The employment data revealed that job creation reached 139,000 positions during May which exceeded market predictions despite a slight decrease in labor market activity. The economic outlook improved because investors believed the economy would survive through President Trump’s unpredictable trade policies without entering a near-term recession.
The stock price of Tesla recovered 4.7% during the early trading session after experiencing a 14.5% decline on the previous day because of the heated discussion between Trump and CEO Elon Musk regarding the tax-cut bill. Tesla experienced a $150 billion decline in market value throughout Thursday.
The apparel company Lululemon experienced a 20% decline in its stock price after it reduced its annual profit projections because of Trump’s tariffs and increased competition from new market entrants. The 10-year Treasury yield increased to 4.47% because investors demonstrated their confidence in the economy’s ability to withstand challenges.
The pre-market trading showed Dow futures increasing 0.3% while S&P 500 and Nasdaq futures each gained 0.4%. The U.S. data received attention from investors who considered both ongoing trade tensions and potential fresh talks between Trump and Chinese leader Xi Jinping.
The positive market sentiment emerged after Trump stated that his conversation with Xi Jinping produced positive results and they plan to continue discussing trade and supply chain issues. The current market optimism suggests that U.S.-China relations are entering a more positive period.
