Wall Street saw its winning streak extend to nine consecutive days on Friday, marking the longest series of gains since 2004. This rally has helped the market recover the ground it lost since President Donald Trump intensified his trade conflict with China in April.
The boost was fueled by a U.S. job market report that exceeded expectations and fresh optimism for reduced tensions in trade relations with China.
The S&P 500, one of the major stock indices, increased by 1.5%. Simultaneously, the Dow Jones Industrial Average saw a 1.4% rise, and the Nasdaq composite ascended by 1.5%.
The increase spread across nearly 90% of stocks and touched every sector of the S&P 500, with technology stocks making substantial contributions. Notably, Microsoft saw a 2.3% rise, while Nvidia climbed by 2.5%. However, Apple experienced a decline of 3.7% as the company projected a $900 million impact from tariffs.
Moreover, banks and financial companies recorded significant advancements. JPMorgan Chase moved up by 2.3% and Visa finished the day with a 1.5% increase.
April saw employers add 177,000 new jobs, reflecting a deceleration from March but still surpassing economists’ projections. It is important to note that these job figures have not yet accounted for the potential economic fallout from President Trump’s sweeping tariffs against America’s trade allies. Though many tariffs expected to take effect in April were postponed by three months, those targeting China have persisted.
Chris Zaccarelli, chief investment officer for Northlight Asset Management, points out that financial markets have already demonstrated their potential reactions if the administration proceeds with its original tariff strategy. A continuation in July, after the 90-day delay, could recreate market fluctuations similar to those seen in early April.
The beginning of April saw the S&P 500 plunge by 9.1% following Trump’s tariff announcements, but resilient earnings from U.S. corporations, diminishing trade anxieties with China, and anticipation of Federal Reserve interest rate cuts have helped the market recover.
Nevertheless, the S&P 500 remains down 3.3% for the year and 7.4% below February’s record peak.
The day’s results saw the S&P 500 rise by 82.53 points to 5,686.67, the Dow increase by 564.47 points to 41,317.43, and the Nasdaq gain 266.99 points to 17,977.73.
With ongoing trade war pressures, the job market’s stability is under scrutiny, given its critical role in supporting consumer spending and overall economic growth. Economists express concern over the repercussions tariffs might have on both businesses and consumers, fearing that heightened costs could suppress hiring and spending.
Indicators already suggest economic strain, with the U.S. economy having contracted at a 0.3% annual rate in the first quarter. Import surges intended to circumvent tariffs have contributed to this slowdown.
The unpredictable nature of Trump’s tariff policies continues to challenge business and household planning. Companies face uncertainty regarding the financial impact of tariffs, influencing them to retract financial forecasts.
There remains hope that negotiations might lead to Trump easing some tariffs, especially those affecting China, with Beijing reportedly reviewing recent U.S. proposals.
The day also witnessed calmer earnings reports following a hectic week. Exxon Mobil rebounded by 0.4% despite revealing its smallest profit for the first quarter in years, while Chevron gained 1.6% under similar circumstances.
The energy sector confronts pressure from declining crude oil prices, which have fallen roughly 17% this year in the U.S., dipping below $60 per barrel—an unprofitable threshold for many producers.
Financial technology company Block saw a sharp 20.4% drop after reporting first-quarter profits that disappointed analysts, attributing the results to reduced consumer travel and discretionary spending.
In the bond market, Treasury yields advanced, with the yield on the 10-year Treasury climbing from 4.22% to 4.31% late on Thursday.