US stocks close higher on jobs data, China hopes while Tesla bounces
Traders work on the floor at the New York Stock Exchange on June 5 in New York City. PHOTO: REUTERS
US stocks close higher on jobs data, China hopes while Tesla bounces
NEW YORK - US stocks closed higher on June 6 after a better-than-expected jobs report calmed worries about the economy, while Tesla bounced, clawing back some losses from a sharp plunge the previous session.
The S&P 500 closed above 6,000 for the first time since Feb 21, fueled by gains in technology shares.
Investors cheered news citing President Donald Trump as saying three cabinet officials will meet representatives of China in London on June 9 to discuss a trade deal.
'The market will chase the trade deal carrot any time it's available. The trick is whether any actual deal gets done,' said Mr Jamie Cox, managing partner at Harris Financial Group.
On June 5, Mr Trump and Chinese leader Xi Jinping spoke, after weeks of trade tensions and a battle over critical minerals. They left key issues unresolved for future talks.
In early trading, US data showed nonfarm payrolls increased by 139,000 jobs in May after rising by a downwardly revised 147,000 in April. Economists polled by Reuters had forecast payrolls advancing by 130,000 jobs.
The unemployment rate stood at 4.2 per cent, in line with expectations.
Following the report, traders bet that Federal Reserve policymakers have little reason to rush on rate cuts. They are seen waiting until September to cut rates, with just one more cut in view by December, based on interest rate futures. Central bank policymakers meet later in June.
'We expect the Fed to remain on hold at this month's meeting and think a softening in the labor market data is likely required for the Fed to continue its easing cycle,' said Ms Lindsay Rosner, head of multi-sector fixed income investing at Goldman Sachs Asset Management.
Weaker-than-expected private payrolls numbers and surveys on the services sector this week had raised concerns that trade uncertainty could slow the economy.
US equities rallied in May, with the S&P 500 index and the tech-heavy Nasdaq scoring their biggest monthly percentage gains since November 2023, thanks to softening of Mr Trump's harsh trade stance and upbeat earnings reports.
On June 6, the S&P 500 hit its highest in over three months, and remained below record highs touched in February by a little more than 2 per cent. The Dow index also rose to a three-month high.
The Dow Jones Industrial Average rose 442.88 points, or 1.05 per cent, to 42,762.62, the S&P 500 gained 61.02 points, or 1.03 per cent, to 6,000.32 and the Nasdaq Composite gained 231.50 points, or 1.20 per cent, to 19,529.95.
The S&P gained 1.5 per cent for the week, the Dow 1.17 per cent and Nasdaq 2.18 per cent.
Shares of Tesla rose 3.8 per cent after plunging about 15 per cent on June 5 during Mr Trump's public feud with Mr Musk, including threats to cut off government contracts with Mr Musk's companies.
Other megacap companies also rose. Amazon was up 2.7 per cent and Alphabet gained 3.25 per cent.
Wells Fargo rose 1.9 per cent as ratings firm S&P Global upgraded its outlook on Wells Fargo to 'positive' from 'stable.' Earlier this week, the US bank was released from a US$1.95 trillion asset cap.
Broadcom shares fell 5% per cent after the networking and custom AI chipmaker's quarterly revenue forecast failed to impress investors.
Lululemon shares slumped 19.8 per cent as the sportswear maker cut its annual profit target, citing higher costs from Mr Trump's tariffs.
Advancing issues outnumbered decliners by a 2.14-to-1 ratio on the NYSE. There were 173 new highs and 34 new lows on the NYSE.
On the Nasdaq, advancing issues outnumbered decliners by a 2.52-to-1 ratio.
The S&P 500 posted 20 new 52-week highs and no new lows while the Nasdaq Composite recorded 86 new highs and 38 new lows.
Volume on US exchanges was relatively light, with 14.5 billion shares traded, compared to an average of 17.8 billion shares over the previous 20 sessions. REUTERS
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That issue is now of key concern, with Russia weakened by the war and economic sanctions and less able than ever to push back against Beijing. The FSB report raises concerns that some academics in China have been promoting territorial claims against Russia. China is searching for traces of 'ancient Chinese peoples' in the Russian Far East, possibly to influence local opinion that is favourable to Chinese claims, the document says. In 2023, China published an official map that included historical Chinese names for cities and areas within Russia. The FSB ordered officers to expose such 'revanchist' activities, as well as attempts by China to use Russian scientists and archival funds for research aimed at attaching a historical affiliation to borderlands. 'Conduct preventative work with respect to Russian citizens involved in the said activities,' the memo orders. 'Restrict entry into our country for foreigners as a measure of influence.' China is unnerving Russia in Central Asia and the Arctic The concerns about China expanding its reach are not limited to Russia's Far East borderlands. Central Asian countries answered to Moscow during the Soviet era. Today, the FSB reports, Beijing has developed a 'new strategy' to promote Chinese soft power in the region. China began rolling out that strategy in Uzbekistan, according to the document. The details of the strategy are not included in the document other than to say it involves humanitarian exchange. Uzbekistan and neighbouring countries are important to Mr Putin, who sees restoring the Soviet sphere of influence as part of his legacy. The report also highlights China's interest in Russia's vast territory in the Arctic and the Northern Sea Route, which hugs Russia's northern coast. Historically, those waters have been too icy for reliable shipping, but they are expected become increasingly busy because of climate change. The route slashes shipping time between Asia and Europe. Developing that route would make it easier for China to sell its goods. Russia historically tried to maintain strict control over Chinese activity in the Arctic. But Beijing believes that Western sanctions will force Russia to turn to China to maintain its 'aging Arctic infrastructure', according to the FSB document. Already, Russian gas giant Novatek has relied on China to salvage its Arctic liquefied natural gas project, after previously using the American oil services firm Baker Hughes. The FSB asserts that Chinese spies are active in the Arctic, as well. The report says Chinese intelligence is trying to obtain information about Russia's development of the Arctic, using institutions of higher education and mining companies in particular. But despite all of these vulnerabilities, the FSB report makes clear that jeopardising the support of China would be worse. The document squarely warns officers that they must receive approval from the highest echelons of the Russian security establishment before taking any sensitive action at all. NYTIMES Join ST's Telegram channel and get the latest breaking news delivered to you.
