Today's Edition
(REUTERS)
US stock indexes rose on Friday, putting the S&P 500 on track for its longest winning streak in over 20 years, as upbeat payrolls data and signs of easing US-China trade tensions soothed concerns around tariff-driven risks to the economy.
The Labour Department's closely watched employment report showed nonfarm payrolls increased by 177,000 in April, exceeding expectations, and unemployment rate held steady at 4.2%.
"This is good employment data which suggests that the economy remains strong," said Melissa Brown, managing director of investment decision research at Simcorp.
"We could see these numbers go down as the impact of tariffs really starts to make its way through the economy, but it's not there yet," she added.
Friday's numbers also helped ease fears that the US economy was close to recession, after gross domestic product contracted in the first quarter due to a tariff-induced flood of imports.
In another positive for markets, Beijing said on Friday it was "evaluating" an offer from Washington to hold talks over US President Donald Trump's 145% tariffs on China.
The tit-for-tat tariffs between the world's two largest economies have kept investors on edge, with both sides unwilling to be seen backing down in a trade war that has roiled global markets.
Still, Trump's reversal of some tariffs has helped US stock indexes recover from recent losses.
The tech-heavy Nasdaq was trading at levels last seen before April 2, dubbed 'Liberation Day', when the president unveiled massive global tariffs.
The S&P 500 was headed for its ninth consecutive session of gains, while the Dow was also on track for a nine-day winning streak, its first since December 2023.
At 11:27 a.m. ET, the Dow Jones Industrial Average rose 353.32 points, or 0.87%, to 41,106.28. The S&P 500 gained 61.10 points, or 1.07%, to 5,665.24 and the Nasdaq Composite gained 219.97 points, or 1.24%, to 17,930.71.
The three indexes were set for their second consecutive week of gains.
Despite signs of reprieve on the trade front, some companies have warned of business impacts or pulled earnings forecasts amid worries of higher costs and a hit to economic growth.
Apple fell 3.9% after the iPhone maker trimmed its share buyback program by $10 billion, and CEO Tim Cook told analysts that tariffs could add about $900 million in costs this quarter.
Amazon.com dipped after it forecast second-quarter operating income below estimates.
Oil giant Chevron rose marginally, while Exxon Mobil slipped after both reported quarterly results.
Block slumped more than 21% after cutting its profit forecast for 2025 and missing estimates for quarterly earnings.
Videogame maker Take-Two Interactive, meanwhile, fell 6.5% after it delayed the release of Grand Theft Auto VI to May 2026.
