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Non-farm payrolls increased by 139,000 jobs in May

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Trump admin officials to meet Chinese officials June 9

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Tesla bounces after massive plunge on Thursday

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Lululemon sinks on lowering annual profit forecast

(Updates to close)

By Saeed Azhar, Kanchana Chakravarty and Sukriti Gupta

NEW YORK, June 6 (Reuters) - U.S. stocks closed higher

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. Technology

stocks kept rising.

Investors cheered news citing President Donald Trump as

saying three cabinet officials will meet with representatives of

China in London on June 9 to discuss a trade deal.

"The market will chase the trade deal carrot any time

it's available. The trick is whether any actual deal gets

done," said Jamie Cox, managing partner at Harris Financial

Group.

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.

In early trading, U.S. 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.

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," said Lindsay

Rosner, head of multi-sector fixed income investing at Goldman

Sachs Asset Management.

Weaker-than-expected private payrolls numbers and surveys on

the services sector this week had raised concerns that trade

uncertainty could slow the economy.

U.S. equities rallied in May, with the S&P 500 index

and the tech-heavy Nasdaq 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.

According to preliminary data, the S&P 500

gained 60.36 points, or 1.02%, to end at 5,999.66 points,

while the Nasdaq Composite gained 227.67 points, or

1.18%, to 19,526.12. The Dow Jones Industrial Average

rose 440.08 points, or 1.04%, to 42,759.82.

Shares of Tesla jumped after plunging about 15%

on Thursday during Trump's public feud with Musk, including

threats to cut off government contracts with Musk's companies.

Other megacap companies also rose including Amazon ( AMZN )

and Alphabet.

Wells Fargo ( WFC ) was up as ratings firm S&P Global

upgraded its outlook on Wells Fargo ( WFC ) to "positive" from "stable."

Earlier this week, the U.S. bank was released from a $1.95

trillion asset cap.

Broadcom ( AVGO ) shares fell after the networking and

custom AI chipmaker's quarterly revenue forecast failed to

impress investors.

Lululemon shares slumped as the sportswear maker

cut its annual profit target, citing higher costs from Trump's

tariffs.