U.S. stocks rallied at midday Friday, buoyed by a strong labor market and renewed optimism in key sectors. The Dow Jones Industrial Average jumped 438 points, or 1.08%, to 41,191.1. The S&P 500 advanced 71.60 points, or 1.28%, to 5,675.74, while the Nasdaq Composite rose 252.59 points, or 1.43%, to 17,963.3. The Russell 2000 outperformed, gaining 1.94%.

Markets were unfazed by mounting political pressure on the Federal Reserve. President Donald Trump took to Truth Social on Friday, urging the Fed to cut interest rates immediately. “Gasoline just broke $1.98 a Gallon… NO INFLATION, THE FED SHOULD LOWER ITS RATE!!!” he wrote, citing falling consumer prices, robust job growth, and strong tariff revenues.

Despite the president’s remarks, the Fed maintained a cautious stance, keeping the federal funds rate at 4.25%–4.5%. Chair Jerome Powell stressed the need last month for “greater clarity” on the economic effects of tariffs and inflation before making any move.

April’s employment data lent support to the Fed’s wait-and-see approach. Nonfarm payrolls increased by 177,000, slightly above the 12-month average of 152,000. The unemployment rate held steady at 4.2%, and wages rose modestly—up 0.2% month-over-month and 3.8% year-over-year to $36.06.

Sector trends painted a mixed picture. Health care and transportation added 51,000 and 29,000 jobs, respectively, while the federal workforce shrank by 9,000 in April and 26,000 since January. Long-term unemployment rose to 1.7 million, highlighting uneven recovery across industries.

Technology stocks continued to lead, with microsoft still buoyed by a surge earlier this year driven by AI demand. Investors increasingly favor tariff-insulated sectors such as health care and tech, while avoiding those more exposed to trade disruptions.