Stocks Rebound as Job Market strengthens, Tesla Recovers
U.S. stock markets saw a gain on Friday, thanks to better-than-expected jobs data. The Dow Jones climbed 300 points, and the S&P 500 rose by 0.75%. Additionally, the tech-heavy Nasdaq surged 0.97%, indicating a positive trend overall.
The jobs report revealed that U.S. employers added 139,000 new jobs in May. This figure is slightly lower than the revised April number of 147,000, but still better than expected. The unemployment rate stayed at 4.2%, a relatively low level. This data suggests the U.S. job market remains robust despite the ongoing trade war concerns.
The Nonfarm Payrolls data is essential for the Federal Reserve. It influences decisions on interest rates, as the Fed aims to support employment while managing inflation. The strong results may make the Fed cautious about lowering interest rates, given inflation concerns.
President Trump reacted to the jobs report by criticizing the Fed. He urged Chairman Jerome Powell to reduce interest rates, calling for a “full point.” Trump believes these cuts would boost the economy.
Tesla shares saw a 5% recovery as investors saw a buying possibility after a sharp decline. This drop was linked to a public feud between Elon Musk and trump. Tesla CEO Musk had previously called for Trump’s impeachment, hurting his company’s stock. However, Musk later tried to ease tensions with the president, only to be rebuffed.
