US stocks rose Friday as China signaled openness to trade talks and investors digested a better-than-expected jobs report. The Dow was up 530 points, or 1.3%, Friday afternoon. The broader S&P 500 rose 1.43% and the tech-heavy Nasdaq Composite gained 1.6%. The S&P 500 was on track for its first first nine-day winning streak since November 2004, according to FactSet data. While the index has notched many seven- and eight-day streaks in recent years, the nine-day consecutive winning streak had proved elusive for the past two decades. The stock market rally picked up steam on Friday after Labor Department data showed the economy added 177,000 jobs in April, outpacing 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, in an email. “While recession fears are still simmering on the back burner, the buy-the-dip dynamic can continue — at least until the tariff pause runs out.” Stocks extended their gains on Friday after a Wall Street Journal report that China is considering how to address the United States’ concerns about its role in the international flow of fentanyl. The S&P 500’s rally on Friday put the index on track to erase its losses since President Donald Trump announced his “reciprocal” tariffs on April 2. Stocks have steadily rallied in recent days as Trump has softened his tone on the US-China trade war and White House officials have teased potential trade deals with other countries, including India. A spokesperson for China’s Commerce Ministry on Friday said it is “currently evaluating” proposals by the United States to begin trade talks, which was a subtle tone shift that could open the door for negotiations. Investors will be attuned to any potential developments or delays in trade progress between the United States and China. Policy uncertainty persists While the strong jobs data on Friday signals a relatively robust labor market and assuaged some jitters about the health of the economy, investors will be focused on data releases in coming months to further gauge the impact of tariffs. “US employment remains strong despite tariff uncertainty,” said David Russell, global head of market strategy, in emailed remarks. “These numbers show leaders have breathing room to avoid a recession if they’re able to resolve trade issues sooner rather than later. It’s not too late to get deals done.” Wall Street has been nervous about potential cracks in the economy after Commerce Department data this week showed the economy contracted last quarter for the first time in years. This was a jam-packed week for economic data releases, with other data from payrolls processor ADP showing private sector hiring slowed significantly in April. CNN’s Fear and Greed index on Friday dipped back into “fear” after briefly rising into “neutral” on Thursday for the first time since February 19. The index had been staunchly in “fear” and “extreme fear” the past two months. “We aren’t out of the woods yet, because it’s unclear how much different the US trade approach will be in the second half of 2025 versus what we’ve seen year to date,” Zaccarelli said. Matt Stucky, chief portfolio manager for equities at Northwestern Mutual, told CNN that navigating “policy uncertainty” is the most significant focus for investors in the coming weeks. Trump on Friday morning posted on social media calling for the Federal Reserve to cut interest rates, continuing a tirade against the independent central bank. “NO INFLATION, THE FED SHOULD LOWER ITS RATE!!!,” Trump wrote. A strong jobs report is often a signal that the Fed can reconsider how soon it needs to cut rates. Traders on Friday dialed back their expectations of a Fed rate cut in June, according to the CME FedWatch tool. Traders now expect a 36.6% chance the Fed cuts in June, down from a 55% chance yesterday. Meanwhile, inflation has been cooling, but still remains above the Fed’s target of 2%. “This report buys the Fed more time to focus on the inflation mandate,” said Gina Bolvin, president of Bolvin Wealth Management Group, in an email. Barclays and Goldman Sachs on Friday pushed back their expectations for the first rate cut this year to July from June. The yield on the 10-year Treasury on Friday rose above 4.3%. The US dollar index fell 0.4%. Big Tech beckons the AI bulls Wall Street’s rally this week was also boosted by strong earnings results on Wednesday from Meta (META) and Microsoft (MSFT). Investors are feeling reassured about the resilience of Big Tech’s focus on artificial intelligence. Meta shares gained 4.2% on Thursday and were up 4.6% on Friday. Microsoft shares surged 7.6% on Thursday and were up 2.5% on Friday. “There are plenty of things to worry about in the world, but Meta’s resilience is not one of them,” analysts at Barclays said in a Wednesday note. Apple (AAPL) on Thursday posted less well-received earnings as the company said it could take a $900 million hit in the second quarter due to tariffs. Apple shares were down 4% on Friday. Amazon (AMZN) posted “healthy” first quarter results, analysts at Wedbush Securities said, but offered mixed guidance for this year. Amazon shares edged higher on Friday. If the S&P 500 closes higher again on Monday, it will be the first 10-day winning streak since 1974, according to Howard Silverblatt, senior index analyst at S&P Dow Jones Indices. In global markets, Europe’s benchmark Stoxx 600 index gained 1.67%. Germany’s DAX index rose 2.62%. Japan’s Nikkei 225 rose 1.04% and Hong Kong’s Hang Seng index rose 1.74%.
S&P 500 on track for longest winning streak in 20 years as Trump and China show some willingness to bend on trade
TruthLens AI Suggested Headline:
"U.S. Stocks Surge on Strong Jobs Data and Trade Negotiation Hopes"
CNN
7.5
TruthLens AI Summary
U.S. stocks experienced a significant rise on Friday, buoyed by positive signals from China regarding trade talks and a robust jobs report that exceeded expectations. The Dow Jones Industrial Average climbed 530 points, reflecting a 1.3% increase, while the S&P 500 and Nasdaq Composite saw gains of 1.43% and 1.6%, respectively. Notably, the S&P 500 is poised to achieve its first nine-day winning streak since November 2004, a milestone that has eluded the market for two decades. The rally gained momentum following the Labor Department's announcement that the economy added 177,000 jobs in April, surpassing the anticipated 135,000. Analysts highlighted this jobs data as a source of relief for markets, with Chris Zaccarelli from Northlight Asset Management noting that while recession fears remain, the positive employment figures could support a continued buying trend until tariff discussions evolve further.
The stock market's upward trajectory was further supported by a Wall Street Journal report indicating that China is contemplating how to address U.S. concerns about its involvement in the international fentanyl trade. This subtle shift in tone from China’s Commerce Ministry suggests a willingness to explore trade negotiations, which investors are closely monitoring. Despite the encouraging jobs data, uncertainties surrounding trade policies persist, particularly as the U.S. grapples with recent economic contractions. Market strategists, such as David Russell, emphasized that strong employment figures provide some leeway for policymakers to mitigate recession risks if trade issues are resolved promptly. Meanwhile, President Trump advocated for a Federal Reserve interest rate cut, influencing market expectations for monetary policy. The week also showcased strong earnings from major tech companies, reinforcing Wall Street's optimism and contributing to the overall market rally. If the S&P 500 continues its upward trend into next week, it could mark the longest winning streak since 1974, further highlighting the current volatility and potential resilience of the market amid ongoing economic challenges.
TruthLens AI Analysis
The article highlights a significant moment in the U.S. stock market, marking a potential end to a long-standing trend of volatility and uncertainty. With the S&P 500 nearing its longest winning streak in two decades, the narrative suggests a sense of optimism tied to both economic data and diplomatic signals from China regarding trade relations. The intersection of economic indicators and geopolitical developments plays a crucial role in shaping investor sentiment.
Market Reactions to Economic Data
Friday's stock market rally was primarily driven by better-than-expected jobs data, which exceeded forecasts with 177,000 new jobs added in April. This positive economic news has likely instilled confidence among investors, as indicated by the substantial gains across major indices like the Dow, S&P 500, and Nasdaq. The article quotes Chris Zaccarelli, who notes that despite lingering recession fears, the immediate market response has been favorable due to the job growth.
Implications of Trade Talks
The willingness of China to engage in trade discussions marks a notable shift in tone from previous stances. The article points out that this could signal a potential thawing of tensions between the U.S. and China, which would be welcomed by investors looking for stability. The mention of specific issues, such as fentanyl trafficking, indicates that the trade talks may encompass broader concerns, potentially leading to more comprehensive agreements.
Policy Uncertainty and Investor Sentiment
While the rally is significant, the article also emphasizes the ongoing uncertainty surrounding U.S.-China trade policy. Investors are likely to remain cautious, closely monitoring any developments that could impact the current momentum. The phrase "buy-the-dip" reflects a prevailing sentiment among investors, suggesting a readiness to capitalize on market fluctuations, at least until there are clear signs of tariff escalations.
Potential Manipulation and Trustworthiness
The framing of the article leans towards a narrative of optimism, which could be interpreted as somewhat manipulative. By highlighting positive job data and diplomatic openness without addressing the potential risks fully, the article may create a skewed perception of market stability. This approach can lead readers to feel overly confident, despite the precarious nature of ongoing trade negotiations.
The reliability of the information seems sound, as it is based on actual economic data and quotes from professionals in the field. However, the focus on positive developments without a balanced exploration of risks could lead to a misleading overall impression.
Community Reactions and Broader Impact
The article appeals to a broad range of investors and market participants who are looking for positive signals in the economy and trade relations. It may resonate particularly with those who have a vested interest in the stock market, such as traders and institutional investors. The implications for the economy and politics are significant, as sustained market growth can influence consumer spending and confidence, potentially leading to a more robust economic environment.
In terms of global power dynamics, the article touches on the importance of U.S.-China relations, which have far-reaching implications for international trade and economic stability. The current context underscores a critical moment in global economic discussions, particularly with ongoing debates about tariffs and trade agreements.
Use of AI in News Narratives
While it is plausible that AI tools could assist in crafting news articles, the specific use of such technology in this instance is unclear without further context. AI could aid in analyzing data trends and generating reports, but the nuanced commentary and interpretation likely require human insight. The article's structure and focus suggest a traditional journalistic approach rather than one predominantly driven by AI.
In conclusion, this article presents a favorable view of the stock market and economic conditions while downplaying potential risks associated with trade negotiations. Readers should remain vigilant and consider the broader context before forming conclusions about market stability.