Wall Street gains ground following a solid jobs report and marks another
winning week
[June 07, 2025] By
DAMIAN J. TROISE
NEW YORK (AP) — Stocks gained ground on Wall Street Friday following a
better-than-expected report on the U.S. job market.
The gains were broad, with every sector in the S&P 500 rising. That
solidified a second consecutive winning week for the benchmark index,
which has rallied back from a slump two months ago to come within
striking distance of its record high.
The S&P 500 rose 61.06 points, or 1%, to 6,000.36. It is now within 2.3%
of its record.
The Dow Jones Industrial Average rose 443.13 points, or 1%, to
42,762.87. The Nasdaq rose 231.50 points, or 1.2%, to 19,529.95.
Technology stocks, with their outsized values, led the broad gains.
Chipmaker Nvidia jumped 1.2% and iPhone maker Apple rose 1.6%.
Tesla rose 3.7%, regaining some of the big losses it suffered on
Thursday when Trump and Musk sparred feverishly on social media.
Circle Internet Group, the U.S.-based issuer of one of the most popular
cryptocurrencies, rose 29.4%. That adds to its 168% gain from Thursday
when it debuted on the New York Stock Exchange.
U.S. employers slowed their hiring last month, but still added a solid
139,000 jobs amid uncertainty over President Donald Trump’s trade war.
The closely watched monthly update reaffirmed that the job market
remains resilient, despite worries from businesses and consumers about
the impact of tariffs on goods going to and coming from the U.S. and its
most important trading partners.
“It looks like, for now, everything is kind of running smoothly,” said
Chris Zaccarelli, chief investment officer for Northlight Asset
Management. “Investors see that as a positive, but we also haven't seen
the full effect of tariffs yet.”
President Donald Trump’s on-again-off-again tariffs continue to weigh on
companies. Lululemon Athletica plunged 19.8% after the maker of yoga
clothing cut its profit expectations late Thursday as it tries to offset
the impact of tariffs while being buffeted by competition from start-up
brands.
Lululemon joins a wide range of companies, from retailers to airlines,
who have warned investors about the potential hit to their revenue and
profits because of tariffs raising costs and consumers potentially
tightening their spending.
Hopes that Trump will lower his tariffs after reaching trade deals with
other countries have been among the main reasons the S&P 500 has rallied
back so furiously since dropping roughly 20% from its record two months
ago. Senior U.S. administration officials will meet with a Chinese
delegation on Monday in London for the next round of trade negotiations
between Washington and Beijing.
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Trader Dylan Halvorsan, left, and specialist Patrick King work on
the floor of the New York Stock Exchange, Thursday, June 5, 2025.
(AP Photo/Richard Drew)
 The economy is already absorbing the
impact from tariffs on a wide range of goods from key trading
partners, along with raw materials such as steel. Heavier tariffs
could hit businesses and consumers in the coming months.
The U.S. economy contracted during the first quarter. Recent surveys
by the Institute for Supply Management, a trade group of purchasing
managers, found that both American manufacturing and services
businesses contracted last month. On Tuesday, the Organization for
Economic Cooperation and Development forecast 1.6% growth for the
U.S. economy this year, down from 2.8% last year.
The uncertainty over tariffs and their economic impact has put the
Federal Reserve in a delicate position.
“All things being equal, you can clearly see they are on hold,”
Zaccarelli said.
The central bank is holding its benchmark interest rate steady as it
worries about tariffs reigniting inflation. It fought hard, using
interest rate increases, to ease inflation back toward its target of
2% and rates have been hovering just above that level.
The Fed has been hesitant to cut interest rates in 2025 after
trimming rates three times late last year. While lower interest
rates can give the economy a boost, they can also push inflation
higher. That could be especially damaging if import taxes are also
raising costs for businesses and consumers.
Wall Street expects the central bank to hold rates steady at its
June meeting, but traders are forecasting that it will have to cut
interest rates later this year in an effort to prop up the economy.
In the bond market, Treasury yields made significant gains. The
yield on the 10-year Treasury rose to 4.51% from 4.39% late
Thursday. The two-year Treasury yield, which more closely tracks
traders’ expectations for what the Federal Reserve will do with
overnight interest rates, rose to 4.04% from 3.92% late Thursday.
Markets in Europe were mostly higher.
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AP writers Elaine Kurtenbach and Matt Ott contributed to this
report.
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