U.S. stock markets extended their rally Friday as the S&P 500, Dow Jones, and Nasdaq all posted strong gains, driven by upbeat economic data and improving investor sentiment. The S&P 500, in particular, is on track to close higher for the ninth consecutive session, marking its longest winning streak since November 2004.
Markets Recover from ‘Liberation Day’ Slump
The rally has effectively erased the losses from April 2, dubbed “Liberation Day” when former President Donald Trump announced sweeping tariffs on major U.S. trading partners. That announcement had sparked a sharp market decline and weakened the U.S. dollar. However, recent signals of easing trade tensions and renewed optimism around U.S. growth have helped stocks recover lost ground.
As of Friday, May 5, the S&P 500 rose 1.47% to 5,686.80, while the Dow Jones Industrial Average surged 601.57 points, or 1.48%, to trade at 41,354.53. The Nasdaq Composite climbed 1.56%, reaching 17,987.89 a level not seen since early April.
Strong Jobs Data Boosts Confidence
Markets were buoyed by the latest non-farm payrolls report, which showed the U.S. economy added 177,000 jobs in April, beating the Dow Jones estimate of 133,000. While the figure was lower than March’s revised 228,000, it still helped ease recession fears and reassured investors of the labor market’s ongoing resilience.
Stock Momentum Lifts Bitcoin, While Gold Dips
The stock market surge has coincided with a significant rally in Bitcoin (BTC), which rose from $87,333 to $97,382 since April 21. Conversely, gold prices have declined, falling from $3,400 to $3,237 per ounce, as investors rotate back into risk assets.
Outlook Remains Cautiously Optimistic
Despite the current momentum, major indices are still trading below their all-time highs set in late 2024. The Dow Jones, in particular, remains beneath its April 2 level, reflecting cautious sentiment around cyclical sectors and multinational corporations that may be impacted by lingering tariff risks.
Still, with trade tensions softening and strong macroeconomic data providing support, investors are regaining confidence. A ninth consecutive gain for the S&P 500 would underscore the market’s resilience and mark a historic comeback after a turbulent April.
