Wall Street gains ground following a solid jobs report

NEW YORK (AP) — Stocks rose on Wall Street Friday following a better-than-expected report on the U.S. job market.

The S&P 500 index rose 0.9% in afternoon trading. The benchmark index remains on track to notch a second consecutive winning week.

The Dow Jones Industrial Average added 344 points, or 0.8% as of 1:22 p.m. Eastern. The Nasdaq composite rose 1.2%

The gains were broad, with nearly every sector in the benchmark S&P 500 rising. Technology stocks, with their outsized values, gave the market its biggest boost. Chipmaker Nvidia jumped 1.6% and iPhone maker Apple rose 1.4%.

Tesla rose 5.5%, regaining some the big losses it suffered on Thursday when Trump and Musk sparred feverishly on social media.

Circle Internet Group, the U.S.-based issuer of one of the most popular cryptocurrencies, rose 43%. That adds to its 38.7% gain from Thursday when it debuted on the New York Stock Exchange at $60 per share.

U.S. employers slowed their hiring last month, but still added a solid 139,000 jobs amid uncertainty over President Donald Trump’s trade war. The closely-watched monthly update reaffirmed that the job market remains resilient, despite worries from businesses and consumers about the impact of tariffs on goods going to and coming from the U.S. and its most important trading partners.

“It looks like, for now, everything is kind of running smoothly,” said Chris Zaccarelli, chief investment officer for Northlight Asset Management. “Investors see that as a positive, but we also haven't seen the full effect of tariffs yet.”

President Donald Trump’s on-again-off-again tariffs continue to weigh on companies. Lululemon Athletica plunged 20.2% after the maker of yoga clothing cut its profit expectations late Thursday as it tries to offset the impact of tariffs while being buffeted by competition from start-up brands.

Lululemon joins a wide range of companies, from retailers to airlines, who have warned investors about the potential hit to their revenue and profits because of tariffs raising costs and consumers potentially tightening their spending.

Hopes that Trump will lower his tariffs after reaching trade deals with other countries have been among the main reasons the S&P 500 has rallied back so furiously since dropping roughly 20% from its record two months ago. It’s now back within 2.5% of its all-time high.

The economy is already absorbing the impact from tariffs on a wide range of goods from key trading partners, along with raw materials such as steel. Heavier tariffs could hit businesses and consumers in the coming months.

The U.S. economy contracted during the first quarter. Recent surveys by the Institute for Supply Management, a trade group of purchasing managers, found that both American manufacturing and services businesses contracted last month. On Tuesday, the Organization for Economic Cooperation and Development forecast 1.6% growth for the U.S. economy this year, down from 2.8% last year.

The uncertainty over tariffs and their economic impact has put the Federal Reserve in a delicate position.

“All things being equal, you can clearly see they are on hold,” Zaccarelli said.