Dow Jones: Gains 500 Points, S&P500 Hits 6,000 as Fed Pauses After Jobs Forecast

Dow Surges Over 500 Points as S&P 500 Reclaims 6,000 on Jobs Optimism

U.S. stocks climbed sharply Friday morning after a stronger-than-expected May jobs report eased recession fears and revived bullish sentiment. The Dow Jones Industrial Average jumped more than 500 points, or 1.2%, while the S&P 500 advanced 1.2% to cross back above the 6,000 mark for the first time since February. The Nasdaq Composite led major benchmarks with a 1.4% gain, boosted by a rebound in key tech names.

Does the Jobs Report Strengthen the Federal Reserve’s Hold?

The Bureau of Labor Statistics reported a 139,000 increase in nonfarm payrolls in May, beating the consensus estimate of 125,000. While this marked a slight drop from the revised 147,000 figure in April, the data signaled resilience in the labor market. Wage growth came in at 0.4% for the month, strong but not considered inflationary, supporting the view that the economy remains stable without pressuring the Federal Reserve to act hastily.

Fed-funds futures showed traders now largely expect the central bank to hold rates steady at both the June and July meetings. According to the CME FedWatch Tool, there’s an 83.4% probability the Fed will keep its benchmark rate at 4.25%-4.5% in July, up from earlier estimates.

Which Sectors Are Leading the Charge?

Gains were broad-based across all 11 sectors, with consumer discretionary (+1.35%) and communication services (+1.74%) among the top performers. Energy stocks rallied 1.73%, buoyed by stable oil prices and renewed confidence in global demand. Technology shares climbed 0.95%, with the sector maintaining its leadership in the 2025 rally.

Even traditionally defensive sectors like healthcare (+0.87%) and utilities (+0.07%) posted modest advances, reinforcing the breadth of the bullish sentiment.

Which Stocks Are Moving the Most?

Tesla surged more than 4% following a sharp sell-off Thursday, helping to lift the broader tech complex. Nvidia, Meta Platforms, and Apple also traded higher. Micron Technology (+3.97%), Palantir (+3.73%), and Super Micro Computer (+3.20%) all saw notable upside.

On the downside, Lululemon plunged over 20% after issuing weak forward guidance, while Broadcom and Mosaic each fell more than 3%.

Outlook: Can the Rally Sustain Ahead of the Fed Meeting?

Friday’s rally reflects a market betting that steady job growth and moderate wage inflation will allow the Fed to stay patient. However, traders will remain focused on inflation data and tariff developments ahead of the June 17–18 FOMC meeting. For now, the strong May payrolls have removed a key hurdle, keeping indexes within striking distance of record highs.

More Information in our Economic Calendar.