US stocks closed at their highest since February and bond yields rose as jobs data allayed concerns of an imminent economic slowdown. Equities also gained amid hopes US-China trade tensions are easing, with President Donald Trump saying negotiators will talk Monday.A 1% advance in the S&P 500 drove the gauge to the 6,000 mark. All major industries climbed. Tesla Inc. jumped over 3.5% to lead megacaps higher. Treasuries dropped across the curve, with two-year yields topping 4%. Money markets trimmed bets that the Federal Reserve will cut interest rates this year. The dollar rose. Bitcoin also got a boost. Oil Rises As Solid US Jobs Data Pushes Algos To Drop Short BetsWhile US job growth moderated in May and the prior months were revised lower, Friday’s report narrowly exceeded forecasts, bolstering bulls who were primed for disappointment after data this week raised doubts about the buoyancy of American hiring.“While it may not be firing on all cylinders, it’s far from showing signs of a major breakdown,” said Bret Kenwell at eToro. “Today’s solid labor report buys the Fed more time, but Chair Jerome Powell may have a hard time justifying a restrictive rate policy should inflation continue lower.”Following Friday’s data, Trump urged the Fed to cut rates by a full percentage point, intensifying his pressure campaign against Powell. “‘Too Late’ at the Fed is a disaster!” Trump posted Friday on social media, using a derisive nickname for Powell. “Europe has had 10 rate cuts, we have had none. Despite him, our Country is doing great. Go for a full point, Rocket Fuel!” Nonfarm payrolls increased 139,000 last month after a combined 95,000 in downward revisions to the prior two months. The unemployment rate held at 4.2%, while wage growth accelerated.The payrolls figure helped alleviate concerns of a rapid deterioration in labor demand as companies contend with higher costs related to tariffs and prospects of slower economic activity.“A solid jobs report reinforces the ‘slowly slowing’ economic narrative,” said Adam Hetts at Janus Henderson Investors. “Today’s news is positive, but ongoing tariff uncertainty means the subsequent hard data releases over the summer will be extremely important for clarity.”In fact, Fed officials have signaled a wait-and-see approach on rates as they await further insights on the impacts of Trump’s policies on the economy.“For the Fed, there is little urgency to cut rates,” said Seema Shah at Principal Asset Management. “Holding on until the trade mist clears will reduce the risk of a policy misstep. We expect the first rate cut to come in late-2025.”Interest-rate swaps showed traders now see a roughly 70% chance of a quarter-point rate cut by September, compared with a probability of about 90% on Thursday. The amount of easing priced in for the year declined to about 43 basis points, fewer than two quarter-point cuts.“The Fed should be reluctant to cut rates because the full effects of tariffs haven’t impacted inflation numbers yet and the job market isn’t deteriorating enough to force their hand,” said Chris Zaccarelli at Northlight Asset Management.Under this backdrop, Zaccarelli thinks caution is still warranted because valuations are high, much of the tariff risks haven’t been removed and the economy appears to be slowing.“While there is still uncertainty over tariffs, the stock market is forward looking and has been pricing in an eventual thawing of trade fears,” said Glen Smith at GDS Wealth Management. “We would not be surprised to see stocks breach and even move above their February peak at some point this summer, albeit with some continued volatility.”US equities will put the worst of this year’s trade-war turmoil behind them and rally to fresh highs in 2025, according to a survey of Bloomberg subscribers who attended a panel discussion on macro trends. The S&P 500 will climb to 6,500 by year-end, according to 44% of the 27 responses in a Markets Live Pulse survey. The index was seen reaching that level by the first half of next year by 26% of participants, with 11% saying it would happen in the second half and the remainder estimating 2027 or later.Investors are enjoying a much-needed breather following a tumultuous two-month period, with the S&P 500 gaining for the fifth week in seven, noted Mark Hackett at Nationwide.“Earnings revisions have stabilized, forward earnings have marginally improved, and corporate resilience is evident in forward guidance, suggesting the path of least resistance is to new highs,” Hackett said.Corporate Highlights:China has approved temporary export licenses to rare-earth suppliers of the top US automakers, Reuters reported on Friday, citing unidentified people familiar with the matter.Boeing Co. has begun shipping commercial jets to China for the first time since early April, indicating a reopening of trade flows amid the long-simmering tariff war between the US and Asia’s biggest economy.Broadcom Inc., a chip supplier to companies like Alphabet Inc. and Apple Inc., fell after the company gave a lackluster revenue forecast for the current quarter, suggesting that the AI spending frenzy isn’t as strong as some investors anticipated.Lululemon Athletica Inc. sank after a second straight disappointing quarter fueled concerns that rising competition, new tariffs and a shift away from yoga pants are derailing its ambitious growth plans.Robinhood Markets Inc. rose for a sixth straight day as investors speculate that the online brokerage could become the latest firm to earn a coveted spot in the S&P 500 Index.UBS Group AG said it would examine steps to mitigate the effects of the Swiss government’s proposal for as much as $26 billion in fresh capital requirements, calling the demand “extreme” and vowing to continue its push to dilute the regulations.Some of the main moves in markets:StocksThe S&P 500 rose 1% as of 4 p.m. New York timeThe Nasdaq 100 rose 1%The Dow Jones Industrial Average rose 1%The MSCI World Index rose 0.7%The Russell 2000 Index rose 1.7%Bloomberg Magnificent 7 Total Return Index rose 2%CurrenciesThe Bloomberg Dollar Spot Index rose 0.3%The euro fell 0.4% to $1.1397The British pound fell 0.3% to $1.3532The Japanese yen fell 0.9% to 144.79 per dollarCryptocurrenciesBitcoin rose 3.8% to $104,315.12Ether rose 3.6% to $2,487.06BondsThe yield on 10-year Treasuries advanced 11 basis points to 4.50%Germany’s 10-year yield was little changed at 2.58%Britain’s 10-year yield advanced three basis points to 4.64%CommoditiesWest Texas Intermediate crude rose 2% to $64.63 a barrelSpot gold fell 1.2% to $3,312.90 an ounce© 2025 Bloomberg L.P.Talking Point This Week — Surprises Galore. 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