The positive job report sparked a fresh rally in US market

Wall Street ended the week on a high note, buoyed by a robust May jobs report that reinforced confidence in the economy’s resilience. Nonfarm payrolls exceeded expectations, and a 0.4% uptick in average hourly earnings signaled ongoing labor market strength.

The positive economic data prompted investors to reassess expectations for Federal Reserve rate cuts. Treasury yields rose sharply, with the 2-year yield climbing 14 basis points to 4.04% and the 10-year yield increasing 12 basis points to 4.51%, both closing at session highs.

This shift influenced Fed rate futures, with the probability of a July rate cut dropping to 16.5% from 31.4% the previous day. September’s odds also decreased, with markets now pricing in a 60.6% chance of a 25-basis-point cut, down from 73.9%.

Despite the tightening policy outlook, major indexes have raised, as investors bet that economic strength could sustain corporate earnings. The path ahead remains data-dependent, with upcoming inflation figures and Fed commentary likely to steer sentiment in the coming weeks.

Major Movers:

• Tesla Inc. (TSLA): Shares rebounded 3.7% to close at $295.14, recovering some losses from the previous day’s 14% drop. The volatility followed a public feud between CEO Elon Musk and President Donald Trump, which had raised concerns over potential impacts on government contracts and EV tax credits.
• Lululemon Athletica Inc. (LULU): The stock plunged 19.8% to $265.27 after the company cut its annual profit forecast, citing higher costs from new tariffs and softening demand in key markets. Despite reporting solid Q1 earnings, the outlook revision spooked investors, leading to the stock’s worst day since March 2020.
• DocuSign Inc. (DOCU): Shares fell 19.0% to $75.28, despite the company beating earnings expectations. The decline was driven by a reduction in its billings forecast and revenue miss, raising concerns about future growth prospects.

Our portfolio FTInvest 11 had a good day today. From the opening, it went up and quickly rose over 1% and stayed near the daily maximums for the rest of the session. As a result, the index posted gain +1.94% and closed at 763.36.