U.S. stock markets surged on Friday, driven by stronger-than-expected job growth and renewed optimism around U.S.-China trade relations. The S&P 500 extended its rally for a ninth straight day marking its longest winning streak in two decades, last seen in November 2004.
Strong Economic Data Ignites Market Optimism
The rally followed the release of the U.S. Labor Department’s April employment report, which showed the economy added 177,000 nonfarm payrolls, handily beating consensus forecasts of around 135,000. The unemployment rate held steady at 4.2%, reinforcing the strength and resilience of the U.S. labor market despite recent concerns over high interest rates and slowing consumer demand.
The S&P 500 climbed 1.47%, while the Dow Jones Industrial Average rose 1.39%, gaining over 570 points. The Nasdaq Composite also posted strong gains, up 1.51% as investors rotated back into equities following a rocky earnings week for Big Tech.
Trade Tensions Ease as China Signals Openness
In a surprise move, China’s Commerce Ministry signaled openness to reengaging in formal trade discussions, stating it is evaluating U.S. proposals and could initiate talks if the U.S. rolls back recent tariffs. This marks a notable shift in tone following President Trump’s April 2 announcement of sweeping new tariffs, dubbed “Liberation Day” by the administration.
Investors welcomed this diplomatic shift, which helped ease anxiety around escalating trade tensions that had weighed on sentiment in recent weeks.
Tech Caution Remains
Despite the day’s overall bullish momentum, caution remains in the tech sector. Apple shares fell nearly 5% after the company warned that U.S. tariffs could cost it up to $900 million this quarter. Amazon shares remained flat after the company issued forward guidance that fell short of analyst expectations.
Market Outlook
Even with Friday’s gains, investors remain focused on the Federal Reserve’s next move. Expectations for a June interest rate cut have tempered slightly, as Treasury yields rose and the U.S. dollar slipped. The evolving inflation narrative and incoming economic data will likely play a decisive role in shaping market direction in the coming weeks.
Nonetheless, the combination of upbeat jobs data and improving trade sentiment is fueling optimism across equity markets and pushing the S&P 500 closer to a historic milestone.
