Stocks Surge After Strong Jobs Report While Tesla Bounces Back

U.S. stock indexes were poised to open higher following a robust jobs report, calming fears about the labor market. Tesla shares rebounded after earlier losses prompted by tensions between Elon Musk and Donald Trump. The S&P 500 and Nasdaq posted gains, fueled by easing trade tensions and strong earnings.

U.S. stock indexes were set to open on a positive note on Friday as a strong jobs report alleviated concerns over labor market health. This comes amid easing tensions between Tesla CEO Elon Musk and U.S. President Donald Trump. May's nonfarm payrolls report showed a rise of 139,000 jobs, surpassing expectations of 130,000, with the unemployment rate holding steady at 4.2%.

"Things are slowing, but they're not collapsing, and that's the good news," noted Art Hogan of B Riley Wealth. This sentiment follows soft economic data that stoked fears of a trade-driven slowdown. Investors anticipate two rate cuts by the year's end, with a likely first cut in September, said LSEG data.

Tesla shares rose 4.1% in premarket trading after a tumultuous Thursday, where $150 billion in market value was wiped out amidst Trump's threats. Despite a reported call to pacify tensions, the White House stated no plans for such a conversation. Meanwhile, U.S. equities rallied in May, supported by Trump's softened trade stance and positive corporate earnings.

(With inputs from agencies.)