FILE PHOTO: Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., June 5, 2025. REUTERS/Brendan McDermid/File Photo

By Stephen Culp

NEW YORK (Reuters) -Wall Street rebounded on Friday and U.S. Treasury yields jumped as a generally upbeat employment report and a bounce-back in Tesla shares helped put the indexes on track for weekly advances.

All three major U.S. stock indexes surged from the starting gate with robust gains, while bitcoin jumped and crude prices touched their highest level since late April.

The U.S. economy added 139,000 jobs in May, topping analyst expectations, while the unemployment rate held firm at 4.2%, according to the Labor Department. The report also showed hotter-than-anticipated wage growth, rounding out a report that is unlikely to convince the U.S. Federal Reserve to cut its key policy rate in the near-term.

"This is a sigh of relief report; people were really worried that this was going to be a kind of start of a downturn in the labor market and therefore start the downturn in the economy," said Scott Ladner, chief investment officer at Horizon Investments in Charlotte, North Carolina.

"And it came in pretty much on the screws and we've got a sort of a bit of a reprieve, at least for a month. And that's leading to a pretty large relief rally," Ladner added.

Tesla stock was last up 5.9%.

The previous day, the very public spat between U.S. President Donald Trump and his top advisor billionaire Elon Musk had shaken the markets, sending shares of Musk-helmed Tesla tumbling, which helped drag the indexes decisively lower.

The falling-out between the erstwhile political allies revived concerns over Trump's "Big Beautiful Bill" of tax and spending plans and its effect on the growing deficit.

Tariff negotiations between the U.S. and its trading partners remain fluid, with the European Union and India working toward ironing out deals, and further talks between Washington and Beijing promised after Trump's phone call on Thursday with Chinese President Xi Jinping.

The Dow Jones Industrial Average rose 485.78 points, or 1.15%, to 42,805.52, the S&P 500 rose 66.69 points, or 1.12%, to 6,005.88 and the Nasdaq Composite rose 252.22 points, or 1.31%, to 19,550.67.

European shares followed their U.S. counterparts higher after the jobs report, as investors remain on the lookout for signs that tensions and uncertainties arising from Trump's erratic trade policies have begun to dampen the economy.

MSCI's gauge of stocks across the globe rose 5.53 points, or 0.62%, to 892.36.

The pan-European STOXX 600 index rose 0.31%, while Europe's broad FTSEurofirst 300 index rose 6.86 points, or 0.31%

Emerging market stocks fell 1.29 points, or 0.11%, to 1,181.39. MSCI's broadest index of Asia-Pacific shares outside Japan closed lower by 0.14% to 622.39, while Japan's Nikkei rose 187.12 points, or 0.50%, to 37,741.61.

The dollar gained ground against major currencies in the wake of the better-than-expected employment data.

The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.57% to 99.22, with the euro down 0.48% at $1.1389.

Against the Japanese yen, the dollar strengthened 1% to 144.96.

The report also prompted a rally in bitcoin, which gained 4.31% to $104,840.63. Ethereum rose 5.02% to $2,519.33.

U.S. Treasury yields also rode the wave of the upbeat jobs data. The yield on benchmark U.S. 10-year notes rose 7.5 basis points to 4.47%, from 4.395% late on Thursday. The 30-year bond yield rose 5.1 basis points to 4.9346% from 4.884% late on Thursday.

The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, rose 8.8 basis points to 4.012%, from 3.924% late on Thursday.

Crude prices were on track for their first weekly gain in three after Trump and Xi resumed trade talks, raising hopes of demand growth.

U.S. crude rose 1.88% to $64.56 a barrel and Brent rose to $66.33 per barrel, up 1.52% on the day. Gold prices dipped in opposition to the strengthening greenback.

Spot gold fell 0.69% to $3,329.83 an ounce. U.S. gold futures fell 0.62% to $3,330.00 an ounce.

(Reporting by Stephen Culp; Additional reporting by Iain Withers in LondonEditing by Peter Graff)