The US stock market witnessed a significant rally on Friday, buoyed by Apple’s robust earnings and market speculation of potential Federal Reserve interest rate cuts. The Dow Jones Industrial Average (^DJI) saw a notable increase of 1.2%, approximately 450 points, while the S&P 500 (^GSPC) climbed by 1.3%. The technology-heavy Nasdaq Composite (^IXIC) experienced an even more impressive surge of 2%.

The April jobs report revealed a slowdown in the US labor market, with only 175,000 jobs added, falling short of the anticipated 240,000. This unexpected dip pushed the unemployment rate to 3.9%, fueling speculation about the Federal Reserve’s next move. Traders, gauging the likelihood of a rate cut, now see a two-thirds chance of such an action by September, according to the CME FedWatch tool.

Apple Inc. (AAPL) stood out with its quarterly earnings, surpassing profit expectations and reporting strong revenue from China, countering the narrative of waning iPhone sales. CEO Tim Cook’s emphasis on Apple’s investment in artificial intelligence (AI) piqued investor interest. In a bold move, Apple announced a record-setting $110 billion stock buyback plan, the largest in US history, which saw its shares jump by 6% in afternoon trading, significantly contributing to the Dow’s upward trajectory.

Biotechnology firm Amgen (AMGN) also made headlines, with its shares leaping nearly 12% after its CEO hinted at the competitive potential of its new obesity drug. This development has sparked optimism about Amgen’s ability to challenge established market leaders like Novo Nordisk (NVO), further energizing the stock market.