The S&P 500 rose on Friday, posting its longest winning streak since 2004. The index erased its losses from President Donald Trump’s tariff announcement on April 2. The Dow Jones Industrial Average closed higher by 564 points, or 1.39%.
The S&P 500 gained 1.47%, and the Nasdaq Composite increased by 1.51%. This marks the ninth consecutive daily gain for both the Dow and the S&P 500. The rally received a boost from a Labor Department report showing the economy added 177,000 jobs in April, exceeding expectations of around 135,000 jobs.
“Markets breathed a sigh of relief this morning as the jobs data came in better than expected,” said Chris Zaccarelli, chief investment officer at Northlight Asset Management. Investors were encouraged by a Wall Street Journal report that China is considering addressing US concerns about its role in the international fentanyl trade. A spokesperson for China’s Commerce Ministry said it is “considering” proposals by the US to begin trade talks, indicating a potential shift towards negotiations.
US employment remains strong despite tariff uncertainty,” said David Russell, global head of market strategy at TradeStation. These numbers show leaders have breathing room to avoid a recession if they’re able to resolve trade issues sooner rather than later.
While the strong jobs data signaled a robust labor market, investors are focusing on upcoming trade negotiations and data releases to further gauge the impact of tariffs.
Nine-day streak boosts S&P 500
The labor market remained on solid footing through mid-April, although this timing likely precedes any forthcoming impacts from trade policy uncertainty,” said David Doyle, head of economics at Macquarie. President Trump continued his call for the Federal Reserve to cut interest rates, despite a strong jobs report that typically suggests otherwise. Traders on Friday dialed back their expectations of a Fed rate cut in June, with the CME FedWatch tool now showing a 36.6% chance, down from 55% previously.
In global markets, Europe’s benchmark Stoxx 600 index gained 1.67%. Germany’s DAX index rose 2.62%, Japan’s Nikkei 225 increased by 1.04%, and Hong Kong’s Hang Seng index went up by 1.74%. Wall Street’s rally was also supported by strong earnings results from Meta and Microsoft.
Meta shares gained 4.2% on Thursday and rose another 4.3% on Friday. Microsoft shares surged 7.6% on Thursday and increased by 2.3% on Friday. If the S&P 500 closes higher again on Monday, it will be the first 10-day winning streak since the 1990s, according to Howard Silverblatt, senior index analyst at S&P Dow Jones Indices.
The S&P 500’s recent performance marks a significant milestone, providing optimism amid ongoing trade negotiations and market uncertainties. However, investors remain cautious, closely monitoring policy developments and economic indicators in the coming weeks.
