Wall Street has recovered from recent losses triggered by Trump’s global tariffs, as optimism over job growth and potential U.S.-China trade talks fueled the market’s longest winning streak in two decades. Tech shares led the charge, helping major indexes post their ninth consecutive day of gains.
Strong Jobs Data Sparks Market Rally
U.S. stocks ended Friday sharply higher, marking a notable comeback after tariff-induced volatility. The S&P 500 and Nasdaq each rose 1.5%, while the Dow Jones Industrial Average gained 1.4%. Microsoft and Nvidia saw the biggest tech sector boosts, each climbing more than 2%.
The market’s upward momentum followed the U.S. Department of Labor’s announcement that 177,000 new jobs were added in April—exceeding expectations despite a slight slowdown from the previous month. Unemployment remained steady at 4.2%.
Trade Negotiation Hopes Buoy Investor Confidence
Investor sentiment was further lifted by news that China is open to resuming trade talks with Washington. The potential thaw in trade tensions comes as China, facing import taxes as high as 145%, evaluates a U.S. proposal.
The prospect of renewed dialogue comes at a crucial time, with investors closely monitoring geopolitical developments and economic data for signs of recession risk or resilience.
Analysts See Mixed Signals on Economic Trajectory
While some economists view the jobs report as a sign of continued economic strength, others remain cautious. Carl Weinberg of High Frequency Economics noted, “You cannot find any evidence of a nascent recession in these figures.”
Seema Shah of Principal Asset Management echoed the positive outlook, suggesting that if trade tensions ease, the U.S. economy might avoid a recession altogether.
Yet not all experts are convinced. Fitch Ratings’ Olu Sonola warned that the long-term effects of the tariffs remain unclear, and the overall economic outlook is still clouded by uncertainty.
Momentum Continues—But Will It Last?
Despite strong jobs data and positive market sentiment, questions remain about the durability of this rally. Will the U.S. economy maintain momentum—or will unresolved trade issues and policy risks trigger a reversal?
