S&P 500 Nears Record Streak Amid Positive Jobs Data and China Talks Boosting Market Optimism
U.S. stocks experienced a significant rise on Friday, driven by robust job growth figures and positive signals from China regarding trade negotiations, which eased recent tariff worries.
The S&P 500 extended its upward momentum, marking nine consecutive days of gains—the longest streak in two decades.
The S&P 500 climbed by 1.47%, achieving its ninth day of gains, the longest run since November 2004. The Dow Jones Industrial Average rose by 1.39%, adding over 570 points, while the Nasdaq Composite climbed by 1.51%.
Market reactions were favorable following the Labor Department’s employment report for April, which showed an increase of 177,000 nonfarm payrolls, exceeding economists’ estimates of approximately 135,000.
The unemployment rate held steady at 4.2%, reflecting ongoing strength in the labor market despite recent economic hurdles.
China’s willingness to engage
Investor sentiment was also boosted by signs of a potential thaw in U.S.-China trade relations.
China’s Commerce Ministry revealed it is reviewing recent proposals from the U.S. and indicated a willingness to begin formal discussions, contingent upon the U.S. retracting its new tariffs.
This indication from Beijing was viewed as a shift in attitude following President Trump’s “Liberation Day” tariff announcements on April 2.
The reassuring jobs data and encouraging trade developments helped alleviate concerns stemming from recent Big Tech earnings results.
Apple shares dropped nearly 5% after announcing potential tariff impacts that could cost the company $900 million this quarter, while Amazon’s shares remained unchanged after offering guidance that fell short of analyst expectations.
Despite the optimistic outlook on Friday, cautiousness remains among investors. Market participants are keeping a close eye on interest rate trends, as traders moderate their expectations for a Fed rate cut in June.
Treasury yields rose, while the dollar saw a slight decline as markets adjusted.