(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window.)

*

Indexes up: Dow 1.28%, S&P 500 1.16%, Nasdaq 1.28%

*

Lululemon sinks on lowering annual profit forecast

*

DocuSign ( DOCU ) falls after quarterly results

(Updates after markets open)

By Kanchana Chakravarty and Sukriti Gupta

June 6 (Reuters) -

U.S. stocks rose on Friday after a better-than-expected jobs

report calmed worries about the economy, while Tesla rebounded

from a sharp plunge a day earlier and technology stocks

continued to rise.

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.

"Things are slowing, but they're not collapsing and

that's the good news. We're not seeing a serious degradation of

the jobs market," said Art Hogan, chief market strategist at B

Riley Wealth.

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. The central bank's policy meeting is due

later this month.

Weaker-than-expected private payrolls numbers and

surveys on services sector this week had raised concerns about

an economic slowdown caused by trade uncertainties.

White House trade adviser Peter Navarro said the planned

meeting between U.S. and Chinese official on trade is expected

to take place within seven days.

Trump and Chinese leader Xi Jinping spoke on Thursday

after weeks of brewing trade tensions and a battle over critical

minerals. The leaders, however, left key issues unresolved for

future talks.

U.S. equities rallied sharply 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.

The S&P 500 hit its highest in over three months on Friday

and remains nearly 2.2% below record highs touched in February.

The Dow index also rose to a near three-month high.

The economically sensitive Russell 2000 smallcap index

gained 1.3%.

The Cboe Volatility Index, known as Wall Street's

"fear gauge," fell 1.19 points to 17.29, its lowest in over two

months.

At 10:24 a.m. ET, the Dow Jones Industrial Average

rose 541.42 points, or 1.28%, to 42,861.16, the S&P 500

gained 69.27 points, or 1.16%, to 6,008.45 and the Nasdaq

Composite gained 246.51 points, or 1.28%, to 19,544.96.

All of the 11 major S&P 500 sub-sectors rose, led by

communication services with a 1.9% rise, while

technology stocks gained 1.1%.

Shares of Tesla rose 3.9% after plunging about

15% on Thursday following Trump's public feud with Musk,

including threats to cut off government contracts with Musk's

companies.

Other megacap companies including Amazon ( AMZN ) was up

1.9%, while Alphabet gained 2.8%.

Broadcom ( AVGO ) shares fell 3.3% after the networking and

custom AI chipmaker's quarterly revenue forecast failed to

impress investors.

Lululemon shares lost 20.4% as the sportswear maker

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

tariffs.

Shares of virtual document signing platform DocuSign ( DOCU )

fell 18.9% after first-quarter results.

Advancing issues outnumbered decliners by a 2.7-to-1 ratio

on the NYSE and by a 2.82-to-1 ratio on the Nasdaq.

The S&P 500 posted 20 new 52-week highs and no new lows,

while the Nasdaq Composite recorded 47 new highs and 24 new

lows.