US stock market rallies as Dow jumps 550 points, S&P 500 tops 6,000, Nasdaq surges and Tesla leads tech comeback after strong jobs report
US stock market surges as
Dow rallies 500 points
on
strong jobs report
as S&P 500 retakes 6,000 in tech-powered comeback-
The Dow rallies 500 points today after a stronger-than-expected May jobs report reassured traders that the U.S. economy is still chugging along even as tariff talks and interest-rate worries linger. The blue-chip index jumped 510 points, or 1.2%. The S&P 500 touched the 6,000 mark for the first time since late February, also up 1.2%, while the tech-heavy Nasdaq Composite climbed 1.4%.
Wall Street's bounce was driven by a 3 percent rebound in Tesla — a sharp U-turn from yesterday's 14 percent slide that followed CEO Elon Musk's public spat with President Donald Trump on social media. Big tech names such as Nvidia, Meta Platforms, and Apple all traded firmly in the green, adding momentum to Friday's rally.
Below, we unpack the numbers, the catalysts, and the lingering risks.
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Dow, S&P 500, and Nasdaq all surge
Dow Jones Industrial Average
surged
555 points
, or about
1.3%
, finishing near
42,841
— its best single-day gain in nearly two months.
S&P 500
jumped
1.2%
and broke through the
6,000
mark for the first time ever, closing around
6,012
.
Nasdaq Composite
climbed roughly
1.4%
, powered by mega-cap tech stocks and a strong bounce in Tesla.
It was a strong finish to a choppy week, with investors embracing optimism after several days of uncertainty.
Strong jobs data adds fuel
The U.S. labor market remains impressively resilient:
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May non-farm payrolls
came in at
139,000 jobs added
, topping economists' expectations.
Unemployment rate
held steady at
4.2%
.
The data signals continued economic strength but also reinforces that the Federal Reserve may not cut interest rates before
September
— a shift traders seem increasingly comfortable with.
Tech comeback driven by Tesla
Tech stocks came roaring back after taking a hit earlier this week, largely due to the Trump–Musk spat.
Tesla
shares jumped between
3.6% and 4.5%
, helping restore confidence across the sector.
Other tech leaders also bounced back:
Nvidia
: +1.6%
Apple
: +1.9%
Amazon
,
Alphabet
, and
Meta
all closed solidly in the green.
The rally was broad-based, but tech clearly led the charge.
Other market movers
Russell 2000
(small-cap stocks) gained
1.3%
, showing strong participation across the board.
VIX
(Volatility Index) dropped to a two-month low, signaling calm returning to markets.
Sentiment was also lifted by signs of cooling U.S.–China trade tensions, another risk factor that has recently weighed on markets.
Why did the Dow rally 500 points after the May jobs report?
The Bureau of Labor Statistics said nonfarm payrolls rose by 139,000 in May, topping the Dow Jones consensus of 125,000 but easing from April's downwardly revised 147,000. Unemployment stayed at 4.2 percent.
'Today's hiring beat shows the labor market is holding up in spite of slower growth elsewhere,' noted Anthony Saglimbene, chief market strategist at Ameriprise, in a CNBC interview.
How did the S&P 500 climb back above 6,000 so quickly?
Fresh jobs data calmed fears of an imminent slowdown, prompting investors to scoop up stocks that looked oversold after a choppy week. At its intraday peak, the broad-market benchmark sat less than 3 percent below February's record close, putting a milestone rebound in sight.
Tesla stock rebounds nearly 6% as Trump-Musk tensions cool and investors look ahead to robotaxi launch
Tesla stock (TSLA)
staged a powerful comeback on Friday, climbing
5.85%
to close at
$301.35
, after a dramatic sell-off the day before. The rebound came as tensions between Elon Musk and President Donald Trump appeared to ease, and investors shifted their focus back to Tesla's big-picture innovations — particularly its highly anticipated
robotaxi rollout
coming later this month.
Price
: US $301.35
Change
: +$16.65 (+5.85%) intraday
Today's range
: $291.43 – $301.96
Volume
: 74.7 million shares traded
What's driving Tesla's recovery?
1. Musk-Trump feud cools off
Tesla had plunged over 14% on Thursday after reports of strained relations between Elon Musk and Trump, which raised concerns about political and regulatory risks. But with the heat now seemingly dialed down, the stock surged, clawing back a large chunk of those losses.
2. Eyes on the robotaxi launch
Investors are increasingly focused on Tesla's next major catalyst: the debut of its
robotaxi service
, expected around mid-June. The move could open up a new revenue stream and solidify Tesla's place at the forefront of autonomous tech.
3. Technical bounce
After falling below key support levels, Tesla stock rebounded sharply from oversold territory. Friday's rally brought it back above $300 — a psychologically important level for many traders.
4. High volume, high interest
More than
74 million shares
traded hands Friday, signaling strong buying interest and a renewed sense of optimism.
Analyst take: cautious optimism
Despite Friday's big move, analysts remain somewhat divided. The average 12-month price target still sits around
$283–$290
, suggesting the stock could drift slightly lower from current levels. However, many remain bullish on Tesla's long-term growth potential, especially as it moves beyond EVs into AI and autonomous transport.
Are tech giants like Tesla, Nvidia, Meta, and Apple leading the charge again?
Yes. Tesla jumped more than 3 percent as bargain hunters stepped in after Thursday's plunge. Nvidia, Meta, and Apple each gained over 1 percent, restoring tech leadership and accounting for a big slice of today's index advance.
What does the stronger jobs report mean for the Federal Reserve's June 17–18 meeting?
With job growth still positive, traders scaled back bets on an immediate rate cut. Futures now imply the Fed will hold its policy rate steady while it waits for clearer signals on how fresh tariffs and cooling service-sector data feed into inflation.
Could summer tariffs and weaker services data stall this rebound?
Possibly. Weekly jobless claims ticked higher, ADP reported just 37,000 private-sector hires in May, and the ISM's services gauge slipped unexpectedly. Saglimbene cautions that tariff impacts 'should start showing up in the data over the summer,' meaning markets 'are holding judgment on growth and profitability for the next couple quarters.'
FAQs:
What caused the Dow to rally 500 points today?
Stronger-than-expected May jobs data boosted investor confidence.
Why did the S&P 500 hit 6,000 again?
A tech stock rebound and solid labor market pushed it above 6,000.
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