«Markets breathed a sigh of relief»: US stocks ended the week at their highest since February

Major U.S. equity indices ended June 6 trading at the highest level since February. S&P 500 index returned to the level of 6000 points. The shares were influenced by the employment data, which were better than expected. They slightly eased investors' concerns about the risk of a slowdown in the U.S. economy. In addition, the market is waiting for trade talks between America and China, which will continue next week in London.

- The S&P 500 broad market index rose 1% on Friday, breaking the psychological 6,000-point mark for the first time since late February overcoming. At the end of the session, the S&P 500 was still more than 2% below its February high.

- The Dow Jones Industrial Average blue-chip index also added 1% on June 6 and ended the day at 42,763 points.

- The Nasdaq Composite index of technology stocks strengthened 1.2% to 19,530 points. The index was supported by Tesla shares, which rose 3.7% on the day after collapse the day before. Microsoft shares broke their record high for the second day in a row, reaching $470.4.

- The Russell 2000 index of small-capitalization companies jumped 1.7% to 2,132 points, outperforming the other indices.

- Treasury bond yields fell and the dollar strengthened, Bloomberg notes.

- Wall Street's so-called fear indicator - aka the Cboe Volatility Index - fell to 16.77, the lowest closing level since February, notes the WSJ.

According to data from the U.S. Bureau of Labor Statistics, the economy added 139,000 new non-farm jobs in May. The report exceeded the Dow Jones forecast (125 thousand new jobs), but was lower than the downwardly revised figure for April - 147 thousand. The unemployment rate remained at 4.2%, wrote CNBC.

The jobs data helped allay investor fears of a rapid decline in labor demand as companies face higher costs from duties and the prospect of slowing economic activity, notes Bloomberg.

Following the release of the statistics, US President Donald Trump called on the Federal Reserve to immediately cut its key rate by a full percentage point, increasing pressure on the regulator's chief Jerome Powell.

«There have already been 10 rate cuts in Europe, we have none. Despite him [Powell], our country is showing excellent results. Cut the whole percentage! It will be like rocket fuel! [for the economy].» - Trump wrote on social media on Friday.

Stocks also rose amid investor hopes that trade tensions between the U.S. and China are easing, with Trump saying talks between the two will continue on Monday.

«The nonfarm payrolls report was better than expected,» Ameriprise chief market strategist Anthony Saglimbene noted in an interview with CNBC. - «It shows that the labor market is holding very steady despite some signs of slowing growth.

The analyst emphasizes that there is still uncertainty about the impact of duties on inflation. According to him, the effects of the duties increase are likely to start showing up in the economic statistics in the summer.

«Markets are still refraining from definitive conclusions on how all of this will affect growth and profitability for companies in the coming quarters, so it's like we're back to where we were in February,» Saglimbene said.

«The strong jobs report supports the thesis of a 'slow slowing' economy. Today's data is positive, but lingering uncertainty around duties means that further hard economic data in the summer will be critical for clarity,» noted Adam Hetts of Janus Henderson Investors.

«The economy may not be operating at full capacity, but it's not showing signs of serious breakdown either. A strong labor market report gives the Fed some time, but Chairman Jerome Powell will have a hard time justifying tight monetary policy if inflation continues to fall,» заявил Bloomberg Брет Кенвелл из eToro.

«There is no particular urgency for the Fed to cut rates. To wait until uncertainty around trade dissipates is to reduce the risk of a policy mistake. We don't expect the first rate cut until late 2025,» said Bloomberg's Seema Shah of Principal Asset Management.

«The slowdown in the labor market has been fairly smooth so far, with no major surprises. If employment gains continue at this level, the Fed is likely to continue with its 'wait and see' strategy.» Markets breathed a sigh of relief after today's jobs report,» wrote Jeffrey Roach, chief economist at LPL Financial.