Major gains in US markets linked to April job growth and China trade talks.
Wall Street Recovers as Employment Numbers Surge Amid Tariff Concerns
Wall Street Recovers as Employment Numbers Surge Amid Tariff Concerns
Stock indices rise following positive job report and renewed trade dialogue.
Wall Street has bounced back from losses sustained after President Trump's global tariffs, marking the longest winning streak for US stocks in two decades. The market has seen gains for nine consecutive days, a first since 2004, largely buoyed by a surprisingly robust jobs report and renewed hopes for US-China trade negotiations. As trading closed on Friday, all major US indexes reported increases, with the S&P 500 and Nasdaq climbing 1.5%, while the Dow Jones Industrial Average rose 1.4%.
The tech sector led the charge, with giants Microsoft and Nvidia each posting gains exceeding 2%. This upward movement follows the Department of Labor's announcement that US employers added an impressive 177,000 new jobs in April, surpassing analyst forecasts despite a deceleration in hiring compared to previous months. The unemployment rate remained stable at 4.2%, providing further reassurance to investors.
Adding to the positive sentiment, China announced it was considering Washington's proposal for trade talks. Currently, China is facing the highest import taxes globally at 145%, making discussions on tariffs even more pressing. For analysts, the job figures seem to quell recession fears that emerged after recent data indicated a contraction of the US economy for the first time in three years.
Carl Weinberg, chief economist at High Frequency Economics, remarked, "There is nothing to complain about here," indicating no signs of an impending recession. Similarly, Seema Shah, chief global strategist at Principal Asset Management, remains hopeful, suggesting the US could avoid a recession if it carefully navigates tariff issues. Nonetheless, some experts urge caution, indicating that the full impact of Trump's tariffs may not be felt immediately. Olu Sonola, head of US economic research at Fitch Ratings, cautioned that while the jobs report is positive, "the outlook remains very uncertain."
Trump tariffs
Stock markets
United States
The tech sector led the charge, with giants Microsoft and Nvidia each posting gains exceeding 2%. This upward movement follows the Department of Labor's announcement that US employers added an impressive 177,000 new jobs in April, surpassing analyst forecasts despite a deceleration in hiring compared to previous months. The unemployment rate remained stable at 4.2%, providing further reassurance to investors.
Adding to the positive sentiment, China announced it was considering Washington's proposal for trade talks. Currently, China is facing the highest import taxes globally at 145%, making discussions on tariffs even more pressing. For analysts, the job figures seem to quell recession fears that emerged after recent data indicated a contraction of the US economy for the first time in three years.
Carl Weinberg, chief economist at High Frequency Economics, remarked, "There is nothing to complain about here," indicating no signs of an impending recession. Similarly, Seema Shah, chief global strategist at Principal Asset Management, remains hopeful, suggesting the US could avoid a recession if it carefully navigates tariff issues. Nonetheless, some experts urge caution, indicating that the full impact of Trump's tariffs may not be felt immediately. Olu Sonola, head of US economic research at Fitch Ratings, cautioned that while the jobs report is positive, "the outlook remains very uncertain."
Trump tariffs
Stock markets
United States
