In brief
The resilience of Wall Street was evident as major US indexes climbed thanks to job growth surpassing expectations and heightened optimism regarding trade negotiations with China.
Wall Street has rebounded from the losses triggered by President Donald Trump's global tariffs, marking the longest winning streak for US stocks in 20 years. On Friday, major US indexes closed higher, with the S&P 500 and Nasdaq both up 1.5%, while the Dow Jones Industrial Average rose by 1.4%. This upswing came after the Department of Labor reported that US employers created 177,000 new jobs in April, surpassing analysts' forecasts despite a notable slowdown in hiring compared to the previous month. The unemployment rate remained flat at 4.2%.In addition to the job figures, investors found further motivation in China's willingness to consider an offer from Washington for trade discussions. With import taxes at an alarming 145%, the potential for easing trade tensions provided a glimmer of hope. Some analysts, like Carl Weinberg of High Frequency Economics, noted that the job statistics alleviated recession worries after recent data indicated a contraction in the US economy for the first time in three years. "The statistics depicted a robust labor market," Weinberg commented, stating there was no evidence of an impending recession. Seema Shah, global strategist at Principal Asset Management, expressed a cautious optimism as well, emphasizing that while the economy might face challenges ahead, a resolution of tariff disputes could help avert a recession.However, not all experts shared this optimism. Olu Sonola, from Fitch Ratings, warned that while the latest job figures seemed promising, the long-term effects of Trump's tariffs might take time to manifest fully. "The outlook remains very uncertain," he cautioned on Friday.
