US STOCKS-Wall Street stocks rise on jobs data; Tesla bounces

By Saeed Azhar, Kanchana Chakravarty and Sukriti Gupta

NEW YORK, June 6 (Reuters) - U.S. stocks rose on Friday 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 and technology stocks kept rising.

Data showed nonfarm payrolls increased by 139,000 jobs last month 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%, in line with expectations.

"Stronger-than-expected jobs growth and stable unemployment underlines the resilience of the U.S. labor market in the face of recent shocks," said Lindsay Rosner, head of multi-sector fixed income investing at Goldman Sachs Asset Management.

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 this month.

"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," Rosner said.

Weaker-than-expected private payrolls numbers and surveys on services sector this week had raised concerns about an economic slowdown caused by trade uncertainties.

White House trade adviser Peter Navarro said the planned meeting between U.S. and Chinese officials on trade is expected to take place within seven days.

On Thursday, Trump and Chinese leader Xi Jinping spoke, after weeks of brewing trade tensions and a battle over critical minerals. They left key issues unresolved for future talks.

U.S. equities rallied in May, with the S&P 500 index .SPX and the tech-heavy Nasdaq .IXIC scoring their biggest monthly percentage gains since November 2023, thanks to softening of Trump's harsh trade stance and upbeat earnings reports.

On Friday, 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%. The Dow index also rose to a three-month high.

At 2:09 p.m. the Dow Jones Industrial Average .DJI rose 430.25 points, or 1.02%, to 42,750.36, the S&P 500 .SPX gained 67.65 points, or 1.14%, to 6,007.00 and the Nasdaq Composite .IXIC gained 277.14 points, or 1.44%, to 19,575.95.

All 11 major S&P 500 sub-sectors rose, led by communications .SPLRCL with a 1.9% rise, while information technology stocks .SPLRCT gained 1.2%.

Shares of Tesla TSLA.O jumped 5.6% after plunging about 15% on Thursday following Trump's public feud with Musk, including threats to cut off government contracts with Musk's companies.

Other megacap companies rose. Amazon AMZN.O was up 2.4%, while Alphabet GOOGL.O gained 3.3%.

Wells Fargo WFC.N was up 1.6%. Ratings firm S&P Global upgraded its outlook on Wells Fargo to "positive" from "stable", after the U.S. bank was released from a $1.95 trillion asset cap earlier this week.

Broadcom AVGO.O shares fell 3.9% after the networking and custom AI chipmaker's quarterly revenue forecast failed to impress investors.

Lululemon LULU.O shares lost 19% as the sportswear maker cut its annual profit target, citing higher costs from Trump's tariffs.

Advancing issues outnumbered decliners by a 2.02-to-1 ratio on the NYSE. There were 141 new highs and 32 new lows on the NYSE.

On the Nasdaq, advancing issues outnumbered decliners by a 2.47-to-1 ratio.

The S&P 500 posted 20 new 52-week highs and no new lows while the Nasdaq Composite recorded 72 new highs and 34 new lows.