01:29 PM EDT, 06/05/2025 (MT Newswires) -- US equity indexes nudged higher as investors assessed the outcome of a call between President Donald Trump and his Chinese counterpart, Xi Jinping, and the weak labor market data pushed up the probability of monetary policy easing.

The Nasdaq Composite rose 0.1% to 19,473.1, the S&P 500 climbed 0.1% to 5,974.3, and the Dow Jones Industrial Average edged 0.2% higher to 42,503.5. At the close on Wednesday, the S&P 500 was up 19.8% since its low after the Liberation Day, leaving it just shy of the 20% mark that would mark the technical start of a bull market, according to a note from Deutsche Bank.

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."

Most US Treasury yields rose, with the 10-year up 2.2 basis points to 4.39% and the two-year rate 4.5 basis points higher at 3.92%.

The call between Trump and Xi coincided with weekly applications for unemployment insurance that unexpectedly increased to the highest since October, US government data showed Thursday. Initial claims rose to 247,000 in the week ended May 31 from 239,000 in the prior week, the Department of Labor reported. The consensus was 235,000 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.

"Tariffs, funding cuts, consumer spending, and overall economic pessimism are putting intense pressure on companies' workforces," said Andrew Challenger, senior vice president at the outplacement firm. "Companies are spending less, slowing hiring, and sending layoff notices."

International trade deficit narrowed to $61.62 billion in April from a $138.32 billion gap in March, versus the $66 billion shortfall expected in a survey compiled by Bloomberg. Imports declined sharply after consumers and businesses stocked up on foreign products in March ahead of a deadline for the effective date of President Trump's trade tariffs.

CME's FedWatch tool showed 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.

West Texas Intermediate crude oil futures advanced 0.7% to $63.26 a barrel.

In company news, Brown-Forman (BF.A) shares slumped 17% intraday, the worst performer on the S&P 500, after fiscal Q4 earnings and net sales declined from a year ago.

JPMorgan upgraded Dollar Tree's ( DLTR ) shares to overweight from neutral while adjusting its price target to $111 from $72. Shares jumped 9.3% intraday, the top performer on the S&P 500.

Gold futures fell 0.7% to $3,374.22 per ounce.