U.S. stocks have surged, marking a nine-day winning streak fueled by positive labor market data and renewed hope for trade negotiations between the U.S. and China.
Wall Street Rebounds as Optimism Grows Amid Trade Talks and Jobs Report
Wall Street Rebounds as Optimism Grows Amid Trade Talks and Jobs Report
Stocks surge on Wall Street as labor market shows unexpected strength and trade tensions ease.
Wall Street rebounded from the losses triggered by President Donald Trump's global tariff imposition a month ago, achieving its longest winning streak in two decades as investors found renewed optimism. For the first time since 2004, shares gained for nine consecutive days, buoyed by a robust jobs report that exceeded expectations along with a glimmer of hope for U.S.-China trade talks.
On Friday, when the market closed, major indexes showed strong performances: the S&P 500 and Nasdaq both rose by 1.5%, while the Dow Jones Industrial Average saw an increase of 1.4%. The technology sector led the gains, with important players like Microsoft and Nvidia jumping by more than 2%.
The Department of Labor announced on Friday that U.S. employers had added 177,000 new jobs in April, surpassing analysts' forecasts, though this figure indicates a slowdown in hiring compared to the previous month. Despite the increase in job opportunities, the unemployment rate remained unchanged at 4.2%.
Investor confidence was further strengthened by China's response to the U.S. trade overture, signaling a potential willingness to engage in discussions about trade agreements. Currently, China faces the world's highest import tariffs, at 145%.
Some analysts suggest that the jobs report successfully alleviated fears of an impending recession following a recent contraction in the U.S. economy—the first in three years. "There is nothing to complain about here," remarked Carl Weinberg, chief economist at High Frequency Economics, in a research note. "You cannot find any evidence of a nascent recession in these figures."
Seema Shah, Principal Asset Management’s chief global strategist, expressed cautious optimism. "The economy will weaken in the coming months but, with this underlying momentum, the U.S. has a decent chance of averting recession if it can step back from the tariff brink in time."
However, not all experts share the same sentiment. Olu Sonola, head of U.S. economic research at Fitch Ratings, cautioned that while the jobs report is strong, the broader economic outlook remains uncertain, and it will take time to fully assess the implications of Trump's tariffs.
