U.S. stocks surged on Friday, building on an upward streak as investors welcomed a stronger-than-expected jobs report and signs of easing trade tensions between the U.S. and China.
The S&P 500 jumped 1.64% as of midday, putting it on track for its ninth consecutive day of gains — a feat not seen since November 2004. The Dow Jones Industrial Average rose 1.47%, or over 500 points, and the Nasdaq Composite climbed 1.79%, led by strength in tech stocks.
Friday’s gains came after the Labor Department reported the U.S. added 177,000 nonfarm payrolls in April, easily topping economists' expectations of 138,000. The unemployment rate remained steady at 4.2%, signaling resilience in the labor market despite ongoing macroeconomic uncertainty.
Market Movers:
- Block (XYZ): Shares of the digital payments company plunged over 20% after it slashed its full-year profit outlook, citing economic headwinds and slowing growth in key segments like Cash App. While earnings beat estimates, revenue missed forecasts, and several analysts downgraded the stock.
- Apple (AAPL): The iPhone maker’s stock fell after warning of a $900 million tariff hit this quarter and announcing a $10 billion reduction in its stock buyback program. Despite beating earnings estimates, investors were rattled by the cautious tone and ongoing exposure to trade policy risks.
- Amazon (AMZN): Shares edged higher after reversing earlier losses. The company delivered strong quarterly results, but its forward guidance disappointed due to concerns over tariffs and broader trade uncertainty. Still, investor sentiment improved as optimism around U.S.-China talks grew.
- Reddit (RDDT): The stock turned positive despite investor concerns about slowing user growth and changes to Google’s search algorithm. The social platform reported an earnings beat, helping it rebound from early session volatility.
- Gold (GC=F): Gold futures rose 0.6% but remained on track for a second straight weekly loss as traders turned more risk-on. Optimism around de-escalating trade tensions and a resilient jobs market lessened demand for the safe-haven asset, which recently pulled back from record highs.
Trade Talks Hint at Thaw
Markets were further strengthened by a statement from China’s Commerce Ministry suggesting that the door remains open for trade talks, should the U.S. scale back its latest round of reciprocal tariffs. The signal from Beijing helped ease fears of a prolonged economic slowdown triggered by President Trump’s aggressive tariff stance.
Trump’s so-called "Liberation Day" tariffs — sweeping duties implemented in early April — initially rattled markets. But with the White House now showing signs of re-engagement and global partners cautiously optimistic, investors are beginning to price in a potential diplomatic resolution.
Fed Rate Cut Pressure Reignites
Following the jobs report, President Trump once again called on the Federal Reserve to lower interest rates, citing the strength of the labor market and the lack of inflation. While Fed Chair Jerome Powell has remained cautious and data-dependent, the pressure from the White House is likely to intensify in the weeks ahead, especially as trade-related volatility continues.
Friday’s employment data may support the Fed’s wait-and-see approach, but further market shocks or tariff escalations could shift that stance. Analysts expect policymakers to closely monitor May’s economic data for signs of tariff-related fallout.
Looking Ahead
With the S&P 500 poised to lock in a rare nine-day win streak, investor sentiment has clearly shifted after weeks of trade-driven anxiety. Next week will bring additional economic data, including inflation and consumer sentiment readings, which could test the market’s current optimism.
Much will also depend on whether the tentative signs of thawing in U.S.-China relations materialize into formal negotiations. For now, a robust labor market and the possibility of a trade détente have given Wall Street a much-needed boost.