The three major stock indices of the New York Stock Exchange closed up more than 1%. Employment data exceeded expectations, easing concerns about a recession. Additionally, the conflict between U.S. President Donald Trump and Tesla Chief Executive Officer Elon Musk was resolved, resulting in a rebound in Tesla's stock.
On the 6th (local time), the Dow Jones Industrial Average closed at 42,762.87, up 443.13 points (1.05%) from the previous session. The Standard & Poor's 500 Index rose 61.06 points (1.03%) to 6,000.36, and the Nasdaq Composite Index surged 231.50 points (1.20%) to finish at 19,529.95.
The effect of the May U.S. non-farm employment figures exceeding expectations was significant. Strong employment figures supported buying sentiment. The U.S. Department of Labor announced that new jobs in the non-farm institutional sector increased by 139,000 compared to the previous month. This surpassed the market expectation of 130,000.
With the strong employment data for May, projections have strengthened that the Federal Reserve's timing for resuming interest rate cuts will be delayed further. According to the Chicago Mercantile Exchange (CME) FedWatch Tool, the federal funds futures market has reflected an increase in the probability of keeping the July benchmark interest rate unchanged to 83.4%, soaring about 15 percentage points from the previous day's close of 68.6%.
President Trump again pressured the Federal Reserve to cut interest rates. On that day, Trump stated on his Truth Social account, "The Federal Reserve being too late is a disaster" and urged, "(The Federal Reserve should) lower the rate by 1 percentage point. It would energize the economy."
All sectors showed strength. Communication services, finance, energy, and consumer discretionary all rose by over 1%. News that the Chinese government granted a provisional license for the export of rare earth elements to the three major U.S. automakers Ford, General Motors, and Stellantis led to all three companies closing up by around 1%.
As consumer indicators came out positively, financial stocks such as Visa and Mastercard also widened their gains. Mastercard set another all-time high.
Major tech companies continued to perform well. Microsoft rose by 0.58%, setting a new all-time high. Alphabet saw its stock increase by more than 3% amid positive reviews of its artificial intelligence (AI) capabilities. Tesla rebounded more than 3% after the disputes between Musk and Trump came to a temporary conclusion.
Meanwhile, the Chicago Board Options Exchange (CBOE) Volatility Index (VIX) fell by 1.71 points (9.25%) to 16.77.