12:57 PM EDT, 06/05/2025 (MT Newswires) -- US equity indexes rose as investors assessed the outcome of a call between President Donald Trump and his Chinese counterpart, Xi Jinping, and weak labor market data pushed up chances of monetary policy easing.

The Nasdaq Composite rose 0.4% to 19,539.5, the S&P 500 climbed 0.3% to 5,986.6, and the Dow Jones Industrial Average nudged 0.3% higher to 42,547.1. Communication services, technology, and real estate led the gainers, while the consumer staples sector declined the most intraday.

"I just concluded a very good phone call with President Xi, of China, discussing some of the intricacies of our recently made, and agreed to, Trade Deal," Trump said in a Truth Social post. "The call lasted approximately one and a half hours, and resulted in a very positive conclusion for both Countries."

The ICE US Dollar Index, which measures the greenback's performance against the world's major currencies, fell 0.1% to 98.68, hovering around its lowest since July 2023.

Most US Treasury yields rose, with the 10-year up two basis points to 4.39% and the two-year rate 3.3 basis points higher at 3.91%.

The call, initiated by Trump, CNBC reported, citing the Chinese embassy in the US and the Ministry of Foreign Affairs, coincides with weekly applications for unemployment insurance unexpectedly increasing, reaching the highest count since October 2024, US government data showed Thursday. The seasonally adjusted number of initial claims rose to 247,000 in the week ended May 31 from the previous week's downwardly revised 239,000 print, the Department of Labor reported. The consensus was for a 235,000 reading in a Bloomberg poll.

Challenger, Gray & Christmas said job cuts reached 93,816 in May, up 47% year over year, but were down 12% sequentially from a year ago. The services sector slashed 22,492 jobs, the highest monthly total for the industry since May 2020.

CME's FedWatch tool showed by Thursday afternoon a 59% probability that the Federal Reserve will cut the target range for its federal funds rate to 4% to 4.25% in September from the current 4.25% to 4.50%, ending its policy pause. That likelihood stood at 33% a month ago and 53% a week ago.