The stock market rallied on Friday, with the S&P 500 posting its longest winning streak in over 20 years. The index rose 1.47%, closing at 5,686.67, marking its ninth consecutive day of gains.
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The Dow Jones Industrial Average jumped 564.47 points, or 1.39%, to finish at 41,317.43, while the Nasdaq Composite advanced 1.51%, ending at 17,977.73.
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The market’s optimism was fueled by a better-than-expected nonfarm payrolls report for April, which showed that 260,000 jobs were added, surpassing the 133,000 anticipated by economists. The unemployment rate remained steady at 4.2%, aligning with expectations. Chris Zaccarelli, chief investment officer at Northlight Asset Management, said, “Markets breathed a sigh of relief this morning as the jobs data came in better than expected.
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While recession fears are still simmering, the buy-the-dip dynamic can continue – at least until the tariff pause runs out.”
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Investors were also encouraged by China’s willingness to negotiate with the U.S., with Chinese authorities communicating a desire for the U.S. to remove all unilateral tariffs, signaling potential progress in trade discussions. Earnings reports had a mixed impact on the market.
Market optimism drives S&P 500 gains
Apple shares fell 3.7% after its services division posted lower-than-expected results and announced an expected $900 million in additional costs due to tariffs. Amazon saw a marginal dip of 0.4% despite posting better-than-expected earnings and revenue, with guidance for the current period falling short of expectations. Jay Hatfield of Infrastructure Capital Advisors predicted a potential summer rally, albeit with some near-term weakness, stating, “We’ve passed peak tariff tantrum.” However, he suggested that significant market gains might be delayed until uncertainties around tariffs, Fed policy, and tax policy are resolved.
Barclays raised concerns about the sustainability of the market’s recent gains amid rising recession talks. Analyst Emmanuel Cau wrote, “Earnings are holding up for now, but more companies are cautious on the economic outlook. So something has to give, as a recession may become unavoidable.”
In other news, shares of language learning app Duolingo soared more than 18% after the company projected a better-than-expected revenue forecast for the second quarter.
Berkshire Hathaway was praised by board member Chris Davis, who called the conglomerate a “national treasure” built to endure and withstand challenges. China also indicated a willingness to address U.S. concerns regarding its role in the fentanyl crisis, potentially reopening trade discussions between the two nations. Overall, stocks capped off a winning week, with the S&P 500 adding 2.9% and the Dow and Nasdaq posting advances of 3% and 3.4% respectively, signaling a period of robust market recovery.
