US STOCKS-Wall Street rallies on rate cut hopes, China tariff delay

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* Weak U.S. employment report casts pall over economy
* Traders boost bets on Fed rate cuts, starting in July
* U.S. gives Chinese exporters more time before higher
tariffs
* Indexes up: Dow 1.31%, S&P 1.37%, Nasdaq 1.84%

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By Amy Caren Daniel and Sruthi Shankar
June 7 (Reuters) - Wall Street's main indexes rose 1% on
Friday, as a sharp slowdown in May domestic job growth raised
hopes of an interest rate cut, while Washington's decision to
delay tariffs on Chinese goods added to the upbeat mood.
The S&P 500 .SPX is up 4.8% this week, putting it on pace
for its best weekly gain since November, on rising expectations
that the Fed would turn more accommodative to blunt the impact
of escalating trade tensions.
A Labor Department report showed nonfarm payrolls increased
by 75,000 jobs last month, much smaller than the 185,000
additions estimated by economists in a Reuters poll, suggesting
the loss of momentum in economic activity was spreading to the
labor market. "We've seen a bit of slowing in jobs growth which will
embolden those in the rate cut camp," said Michael Antonelli,
market strategist at Robert W. Baird in Milwaukee.
Following the week jobs data, traders raised their bets that
the Federal Reserve will start cutting rates in July followed by
two more rate cuts before the end of the year. MMT/
Interest-rate sensitive bank stocks .SPXBK fell 0.40%, but
the broader financial sector .SPSY reversed course to trade
marginally higher.
Also helping sentiment, the United States officially granted
Chinese exporters two more weeks to get their products into the
country before increasing tariffs, according to a U.S.
government notice posted online. "The market is just so sensitive to trade right now that
anything that looks positive will have an upsized reaction,"
Antonelli said.
Tariff-sensitive Boeing Co BA.N and Caterpillar Inc
CAT.N rose about 1%, while industrial stocks .SPLRCI gained
1.2%.
At 10:58 a.m. ET, the Dow Jones Industrial Average .DJI
was up 336.05 points, or 1.31%, at 26,056.71. The S&P 500 .SPX
was up 38.85 points, or 1.37%, at 2,882.34 and the Nasdaq
Composite .IXIC was up 139.87 points, or 1.84%, at 7,755.42.
On the tussle with Mexico, a senior White House official
said if talks continue to go well President Donald Trump could
decide not to move forward with tariffs on Mexican imports on
Monday. All the major S&P sectors were trading higher and the
technology sector, among the hardest hit due to the recent
escalation in trade tensions, rose 2.3% and provided the biggest
boost.
Beyond Meat Inc BYND.O shares surged 32.5% after the maker
of plant-based burgers and sausages said it expects to more than
double its revenue and report breakeven EBITDA this year.
Advancing issues outnumbered decliners by a 5.23-to-1 ratio
on the NYSE and by a 2.72-to-1 ratio on the Nasdaq.
The S&P index recorded 107 new 52-week highs and no new low,
while the Nasdaq recorded 84 new highs and 59 new lows.