US open: Rally continues into fourth straight session as potential rate cuts remain in focus
Wall Street got off to a good start on Friday, with stocks looking to extend their rally into a fourth straight session amid hopes of progress on trade talks between the US and Mexico and increased chances of a Fed rate by the end of the year.
As of 1530 BST, the Dow Jones Industrial Average was up 0.85% at 25,940.39, while the S&P 500 was trading 0.88% firmer at 2,868.48 and the Nasdaq started out the session 1.12% higher at 7,701.13.
The Dow opened 219 points higher on Friday, continuing its solid performance over the last few days after a disappointing jobs report increased the likeliness of the Federal Reserve easing monetary policy.
Earlier in the week, Federal Reserve chair Jerome Powell indicated the central bank would be open to easing monetary policy in order to save the economy.
On the trade front, Mexican ambassador to the US Martha Barcena Coqui told CNBC on Thursday that negotiations with the White House had involved a "very good discussion".
The US' southern neighbour agreed to send its national guard to its border with Guatemala in order to stem the flow of undocumented migrants hoping to reach the US, according to Reuters.
But Trump seemingly wasn't satisfied with this and was allegedly still considering declaring a new national emergency to impose the tariffs.
The President was said to be looking into the emergency status as a result of "the failure of the Government of Mexico to take effective action to reduce the mass migration of aliens illegally crossing into the United States through Mexico."
In terms of economic data ahead of the weekend, hiring in the States slowed down sharply in May after a 224,000 gain during the previous month.
According to the Department of Labor, US non-farm payrolls rose 75,000 in May, falling well and truly short of the consensus forecast for a rise of 190,000, while gains in payrolls over the previous two months were also revised down by a combined 75,000.
The figure could also dramatically impact the Fed's current thinking as it debates about whether to lower interest rates.
In an immediate reaction to the payrolls report, the yield on the benchmark two-year US Treasury note fell by seven basis points to 1.80%, while the 10-year Treasury yield plunged to a 21-month low of 2.065%.
Elsewhere, wholesale inventories in the US jumped 0.8% in May, more than double the figure expected on the Street, adding to gross domestic product.
However, sales fell 0.4% last month, indicating companies could be looking to scale back production if demand remains muted.
On the corporate front, Barnes & Noble was up 11% in early trade after the Wall Street Journal reported the retailer was in the process of being acquired by Elliot Management, while Zoom Video shares shot up 21% at the bell after announcing better than expected earnings overnight.
Beyond Meat also opened 26% higher on the back of its solid first earnings as a listed company.