The S&P 500 rose on Friday. It posted its longest winning streak since 2004. China signaled openness to new trade talks.
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Investors digested a better-than-expected jobs report. The Dow closed higher by 564 points, or 1.39%. The S&P 500 rose 1.47%.
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The Nasdaq Composite gained 1.51%. This marked the S&P 500’s first nine-day winning streak since November 2004. The rally helped the S&P 500 erase losses since President Donald Trump announced tariffs in April.
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The stock market received a boost from the Labor Department’s report. It showed the economy added 177,000 jobs in April, surpassing expectations of about 135,000.
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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.
Longest winning streak since 2004
While recession fears are still simmering on the back burner, the buy-the-dip dynamic can continue—at least until the tariff pause runs out.”
Stocks have risen as Trump softened his tone on the US-China trade war. White House officials teased potential trade deals with other countries, including India.
Investors remain focused on any developments or delays in trade progress. A Wall Street Journal report suggested China is considering addressing US concerns about its role in the fentanyl trade. This subtle tone shift could open the door for negotiations.
David Russell, global head of market strategy at TradeStation, said: “US employment remains strong despite tariff uncertainty.”
David Doyle, head of economics at Macquarie, said: “The labor market remained on solid footing through mid-April, although this likely precedes any impacts from trade policy uncertainty.”
Traders have dialed back expectations for a Federal Reserve rate cut in June after Trump called for lower interest rates. Traders now foresee a 36.6% chance of a rate cut in June, down from 55% previously. Big Tech stocks boosted the market this week, particularly following strong earnings from Meta and Microsoft.
Meta shares rose 4.2% on Thursday and 4.3% on Friday. Microsoft shares surged 7.6% on Thursday and 2.3% on Friday. However, Apple reported less well-received earnings, forecasting a potential hit due to tariffs.
Apple shares declined 3.74% on Friday. If the S&P 500 closes higher again on Monday, it will be the first 10-day winning streak since the 1990s, according to Howard Silverblatt, senior index analyst at S&P Dow Jones Indices.
