US stocks edged higher early Friday after the May jobs report, which showed slower hiring amid ongoing economic uncertainty fuelled by President Donald Trump’s aggressive trade policies and a high-profile feud with billionaire Elon Musk.The Dow Jones Industrial Average (DJIA) jumped 431 points to 42,750.83, a gain of 1.02%, while the Nasdaq Composite surged 1.19%, adding 230 points to reach 19,528.61, as tech stocks led the early rally. The S&P 500 also advanced, climbing 58 points to 5,997.59, up 0.98%, putting the benchmark index on the cusp of the key 6,000 level.At 9:40 am, Tesla Inc’s stock price rose sharply to $299.46, gaining $14.76 or 5.19% compared to the previous close.Markets were buoyed by improving investor sentiment, even as the US 10-year Treasury yield rose to 4.472%, up 7.7 basis points, reflecting shifting expectations on inflation and interest rates. Despite the uptick in yields, equities remained resilient.Earlier, Futures for the Dow Jones Industrial Average rose 0.3%, while the S&P 500 and Nasdaq futures gained 0.4% each, signalling a cautious optimism ahead of fresh labor market data from the US Labour Department later in the day.Job growth slowed in May, with employers adding a solid but reduced 139,000 jobs, down from a revised 147,000 in April. The unemployment rate remained steady at 4.2%, underscoring a resilient labour market despite headwinds. Economists caution that Trump’s sweeping tariffs on imports, aimed at reducing trade deficits but raising costs for US companies, could eventually slow hiring and potentially tip the economy toward recession.Trump’s unpredictable trade war and his crackdown on illegal immigration — which may limit the available workforce — have clouded the economic outlook. However, the effects of these policies have yet to fully register in the government’s economic data.Adding to market jitters this week was a public spat between Trump and Elon Musk, CEO of Tesla and SpaceX. Tesla shares rebounded early Friday, climbing 4.7% after plunging 14.5% on Thursday following the heated exchange, which saw Trump threaten to use federal powers against Musk’s companies. The confrontation erased roughly $150 billion of Tesla’s market value in a single day, a loss larger than the market caps of many major US companies.Retail sector woes also surfaced as Lululemon shares plunged over 20% after the athletic apparel maker cut profit forecasts, citing tariff-related cost pressures and growing competition from start-ups. Consumer confidence appears to be wavering amid the ongoing tariff turmoil, weighing on discretionary spending.Investor hopes for a trade détente received a boost after Trump reported a “very good phone call” with China’s President Xi Jinping, with plans for their teams to meet soon. However, Chinese state media offered a more cautious assessment, tempering optimism.Global markets showed mixed reactions: Europe’s DAX and CAC 40 slipped modestly, while Asian indexes mostly advanced. India’s Sensex gained 0.8% following a key interest rate cut by the Reserve Bank of India to 5.50%.In the bond market, the yield on the US 10-year Treasury held steady near 4.39%, after falling earlier this week on speculation that the Federal Reserve may need to ease rates later this year to cushion the economic impact of tariffs.Energy prices showed little change, with US crude oil down slightly to $63.30 per barrel and Brent crude near $65.31.Currency markets reflected some risk-off sentiment: the US dollar strengthened against the yen, while the euro slipped to $1.1414.
