US: Stocks rebound on jobs data relief, US-China talks

[WASHINGTON] Wall Street stocks bounced on Friday as solid US employment data helped stave off concerns of an imminent downturn, while President Donald Trump’s announcement that US and Chinese officials would soon meet added to optimism.

The Dow Jones Industrial Average was up 1.1 per cent to 42,762.87, while the broad-based S&P 500 Index added 1.0 per cent to 6,000.36.

The tech-heavy Nasdaq Composite Index advanced 1.2 per cent to 19,529.95.

Investors cheered official jobs data released early on Friday, showing that the world’s biggest economy added 139,000 jobs in May while unemployment held steady. The hiring numbers were better than analysts expected.

They also marked a gradual easing from April’s level, as traders monitor the effects of Trump’s sweeping tariffs.

The employment report “gave investors a lot of relief,” said Adam Sarhan of 50 Park Investments. “The economy and the market remain very resilient.”

Markets will also be eyeing the progress of US-China talks on Monday in London, after Trump announced on social media that both sides would be meeting “with reference to the Trade Deal.”

While the world’s two biggest economies have reached a temporary de-escalation in their tit-for-tat tariffs war, negotiations appeared to be at an impasse in recent days.

But the London meeting, unveiled after Trump spoke in a call with Chinese President Xi Jinping this week, marks further high-level engagements.

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“(Trump) loves making deals,” said Sarhan of the upcoming talks. “Most likely, every day that passes, we’re getting closer to a deal getting done.”

Shares in Tesla also rebounded on Friday, rising 3.7 per cent.

Tesla’s shares had tanked a day prior as a spat between Trump and his billionaire former advisor Elon Musk - boss of the electric vehicle company - spilled into the open. AFP