NEW YORK — U.S. stock markets rebounded significantly after a recent downturn following President Donald Trump’s imposition of global tariffs. This marked the longest stretch of gains for American stocks in two decades, with shares rising for the ninth consecutive day as investors reacted positively to encouraging economic indicators and renewed hopes for U.S.-China trade discussions.
On Friday, all major U.S. indexes reported gains, with the S&P 500 and Nasdaq both climbing 1.5%, while the Dow Jones Industrial Average increased by 1.4%. The technology sector led these advances, showcasing robust performances from companies such as Microsoft and Nvidia, which saw their stock prices rise by more than 2%.
Investor optimism was bolstered by a report from the Department of Labor, which revealed that U.S. employers added 177,000 jobs in April. This figure exceeded analysts’ expectations, although it represented a decline from the previous month’s hiring figures. Meanwhile, the unemployment rate remained unchanged at 4.2%, maintaining stability in the labor market.
Adding to the positive sentiment, Beijing indicated its willingness to consider a proposal from Washington for trade negotiations. With China currently facing the highest import tariffs in the world, the prospect of discussions could signal a potential easing of trade tensions.
Economists have pointed out that the latest employment data could help alleviate concerns about a recession, particularly in light of recent reports showing a contraction in the U.S. economy for the first time in three years. Carl Weinberg, chief economist at High Frequency Economics, remarked on the robustness of the labor market, stating, “You cannot find any evidence of a nascent recession in these figures.”
Seema Shah, chief global strategist at Principal Asset Management, expressed a cautiously optimistic view on the economy’s trajectory. She noted that while challenges may arise in the coming months, the underlying momentum suggests that the U.S. might dodge a recession if it can mitigate the effects of tariffs in time.
However, some analysts caution that the full impact of Trump’s tariff policies has yet to be realized. Olu Sonola, head of U.S. economic research at Fitch Ratings, acknowledged the strength of the latest job report but urged caution, emphasizing that the economic outlook remains uncertain.
As major market movements reflect investor confidence, the ongoing developments in trade negotiations and job growth will be closely monitored in the coming weeks. The resilience of the labor market may play a crucial role in shaping the economic landscape as the U.S. navigates these complex challenges.