Wall Street managed to recover some losses that followed President Donald Trump’s global tariffs imposed about a month ago, marking the end of his longest winning streak in U.S. stocks in two decades.
For the first time since 2004, stocks recorded their ninth consecutive day of gains, boosted by favorable employment reports and increased optimism surrounding U.S.-China trade discussions.
By the time the market wrapped up on Friday, all major U.S. indices had risen—the S&P 500 and NASDAQ both up by 1.5%, while the Dow Jones Industrial Average climbed by 1.4%.
The technology sector stood out, with companies like Microsoft and Nvidia seeing increases of over 2%.
This positive shift followed a report from the Labor Department stating that U.S. employers added 177,000 new jobs in April.
Though this figure exceeded analysts’ expectations, hiring did slow compared to the previous month. Meanwhile, the unemployment rate remained steady at 4.2%.
Another boost for investors came from Beijing, which announced on Friday that it was open to trade consultations with Washington.
China’s import taxes stand at a staggering 145%, the highest in comparison.
Some analysts view the job data as indicative of a possible contraction in the U.S. economy for the first time in three years, particularly in light of data from the Commerce Department earlier this week, which aimed to alleviate recession fears.
“There’s really nothing to complain about here,” noted Carl Weinberg, chief economist at Radio Frequency Economics, in a research note.
“We can’t find evidence of a new recession in these numbers.”
Sheemasha, Chief Global Strategist at Principal Asset Management, also expressed a sense of hopefulness.
“The economy might weaken in the coming months, but this underlying momentum could help the U.S. steer clear of a recession if it can step back from the edge of tariffs,” she remarked.
However, other experts caution that the full effects of Trump’s tariffs could take longer to fully materialize.
While the Jobs Report is strong, “the outlook remains very uncertain,” said Orsonora, head of U.S. economic research at Fitch Rating, during an interview with the BBC on Friday.
