U.S. equity markets opened higher Friday morning, with investors welcoming a steady May jobs report that helped ease concerns about a potential slowdown in the world’s largest economy.

At the opening bell, the Dow Jones Industrial Average jumped 363 points, or 0.86%, to 42,682.8. The Nasdaq Composite gained 227.77 points, or 1.18%, to 19,526.2, while the S&P 500 rose 55.19 points, or 0.93%, to 5,994.49. The small-cap Russell 2000 index added 1.40% in early trading.

The upbeat tone on Wall Street was largely driven by a better-than-expected U.S. jobs report. According to the Bureau of Labor Statistics, nonfarm payrolls increased by 139,000 in May, topping economists’ expectations of 130,000. Despite downward revisions totaling 95,000 for the prior two months, the labor market data was interpreted as a sign of controlled cooling—supporting the case for a soft economic landing.

Average hourly earnings rose by 0.4% in May, outpacing forecasts for a 0.3% gain, while annual wage growth held steady at 3.9%. The unemployment rate remained unchanged at 4.2%, consistent with recent trends. However, the labor force participation rate dipped to 62.4% from 62.6%, indicating underlying softness.

Healthcare, leisure and hospitality, and social assistance led sector-level employment gains. Healthcare alone added 62,000 jobs, significantly above its 12-month average. Leisure and hospitality tacked on 48,000 positions, driven by food services, while social assistance added 16,000 jobs. Manufacturing, in contrast, lost 8,000 jobs, and federal government employment fell by 22,000, extending a multi-month contraction.

Markets are also eyeing developments on the international trade front. Peter Navarro, White House Trade Adviser, said he expects a U.S.-China trade meeting to occur within the next seven days. Meanwhile, President Donald Trump’s steel and aluminum tariffs—initially set at 25% and now raised to 50%—continue to roil markets amid frequent policy shifts and geopolitical uncertainty.

Adding to investor distraction is the escalating feud between President Trump and Tesla CEO Elon Musk. CNBC, citing a White House official, reported Friday that Trump is "not interested" in taking a call from Musk, effectively dismissing any reconciliation. The rift has impacted markets: Tesla shares fell 14.3%, erasing nearly $20 billion from Musk’s net worth, while the president’s official meme coin also took a hit. White House Press Secretary Karoline Leavitt attributed Musk’s behavior to a “difficult time,” hinting at possible mental health concerns, though the administration is focused on advancing its flagship legislative proposal—the One Big Beautiful Bill.

With investors digesting a mix of solid economic data, trade tensions, and political theater, today’s rally suggests cautious optimism heading into next week’s critical CPI report and the Federal Reserve’s June policy meeting.