[New York Stock Exchange] U.S. Jobs Report Lifts All Indexes... Nasdaq Up 1.2%

Dow Rises 1.05% to 42,762.87
Nonfarm Payrolls Exceed Expectations
Trump-Musk Conflict Resolved

All three major stock indexes on the New York Stock Exchange closed more than 1% higher. The May U.S. nonfarm payrolls report exceeded expectations, easing concerns about a possible recession. In addition, the resolution of the conflict between former U.S. President Donald Trump and Tesla CEO Elon Musk led to a rebound in Tesla's share price, further improving investor sentiment toward technology stocks.

On June 6 (local time), the Dow Jones Industrial Average on the New York Stock Exchange (NYSE) closed at 42,762.87, up 443.13 points (1.05%) from the previous session. The Standard & Poor's (S&P) 500 Index rose 61.06 points (1.03%) to 6,000.36, while the Nasdaq Composite Index jumped 231.50 points (1.20%) to close at 19,529.95.

Asia Economy DB

The stronger-than-expected May U.S. nonfarm payrolls report had a significant impact. The robust employment data supported buying sentiment. The U.S. Department of Labor announced that nonfarm payrolls increased by 139,000 in May compared to the previous month. This figure surpassed the market expectation of 130,000.

Anthony Saglimbene, chief market strategist at Ameriprise, commented, "The nonfarm payrolls report came in better than expected," and added, "Despite some signs of slowing growth, the labor market has remained very resilient."

With the strong May employment data, expectations have grown that the Federal Reserve (Fed) will delay resuming interest rate cuts. According to the CME FedWatch Tool, the federal funds futures market reflected an 83.4% probability of the benchmark interest rate remaining unchanged in July. This is a sharp increase of about 15 percentage points from 68.6% at the close of the previous day.

Despite the strong employment data, former President Trump renewed his pressure on the Fed to cut rates. Trump wrote on his Truth Social account that "the Fed being too late would be a disaster," and urged, "Cut (the rate) by 1 percentage point. It will energize the economy."

The announcement that the United States and China will hold trade negotiations in London, United Kingdom, on June 9 revived expectations for a U.S.-China trade agreement. The negotiations will include U.S. Treasury Secretary Scott Besant, Secretary of Commerce Howard Lutnick, and U.S. Trade Representative (USTR) Jamison Greer.

All sectors showed gains. Communication services, financials, energy, and consumer discretionary stocks all rose more than 1%. News that the Chinese government had granted provisional approval for the three major U.S. automakers?Ford, General Motors, and Stellantis?to export rare earths led all three companies to gain around 1%.

Strong consumer indicators also boosted financial stocks such as Visa and Mastercard. Mastercard hit another all-time high.

As U.S.-China trade negotiations continued, major technology companies also maintained their upward momentum. Microsoft rose 0.58%, reaching a record high. Alphabet climbed more than 3%, buoyed by continued positive reviews of its artificial intelligence (AI) technology. Tesla rebounded more than 3% after the dispute between Musk and Trump was resolved.

On the other hand, Broadcom's share price fell 5% despite strong first-quarter earnings, as its free cash flow (FCF) came in weaker than expected. U.S. sports apparel company Lululemon saw its share price plunge 20% after it lowered its annual earnings outlook due to tariff uncertainties.

Meanwhile, the Chicago Board Options Exchange (CBOE) Volatility Index (VIX) dropped 1.71 points (9.25%) to 16.77.