The S&P 500 surged on Friday, marking its longest winning streak since November 2004.
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This milestone comes as President Donald Trump and Chinese officials indicated a potential softening of their stances in the ongoing trade war. The Dow Jones Industrial Average closed higher by 564 points, or 1.39%.
The broader S&P 500 increased 1.47%, and the tech-heavy Nasdaq Composite gained 1.51%. The S&P 500 recorded its ninth consecutive daily gain, a feat it last achieved in 2004. Friday’s market boost was supported by encouraging job data from the Labor Department.
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The economy added 177,000 jobs in April, surpassing expectations of 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.”
Investor confidence was bolstered amid speculation about improved US-China trade relations. A report suggested that China is contemplating addressing US concerns about its role in the international fentanyl trade.
A spokesperson for China’s Commerce Ministry stated that the country is considering proposals from the US to initiate trade talks. David Russell, global head of market strategy at TradeStation, commented, “The strong employment data indicates the labor market remains robust despite ongoing tariff uncertainties.
S&P 500 extends winning streak
This could provide leaders with the breathing room needed to avert a recession if trade conflicts are resolved promptly.”
Policy uncertainty continues to loom over the economic outlook. David Doyle, head of economics at Macquarie, said, “The labor market remained on solid footing through mid-April, a period likely preceding any major impacts from trade uncertainties.”
The stock market’s positive momentum also received a lift from strong earnings reports from major technology companies. Meta and Microsoft’s earnings results reassured investors about the sector’s resilience.
Meta’s shares rose 4.2% on Thursday and 4.3% on Friday, while Microsoft’s shares surged 7.6% on Thursday and 2.3% on Friday. Apple reported less encouraging earnings, indicating potential negative impacts from the tariffs. Apple shares fell 3.74% on Friday.
Amazon posted solid first-quarter results but provided mixed guidance for the year, leading to a slight decline in its stock price. The Federal Reserve’s potential actions also remain a focal point. Despite President Trump’s calls for lowering interest rates, Friday’s strong job report suggested that the Fed might delay any rate cuts.
In the bond market, the yield on the 10-year Treasury rose above 4.3%, and the US dollar index fell 0.3%. In global markets, Europe’s Stoxx 600 index gained 1.67%, Germany’s DAX index increased 2.62%, Japan’s Nikkei 225 rose 1.04%, and Hong Kong’s Hang Seng index was up by 1.74%. As Wall Street eyes the possibility of extending its winning streak, investor vigilance remains high amid ongoing economic and political developments.