In brief
U.S. stocks experience a resurgence after a month of market losses attributed to tariffs, signaling investor optimism and positive economic indicators.
Wall Street has made a remarkable recovery from losses sustained after President Donald Trump's global tariffs were introduced a month ago, marking the longest winning streak for U.S. stocks in two decades. The market saw gains for nine consecutive days, a feat last achieved in 2004, driven by encouraging job reports and hopes of renewed U.S.-China trade discussions.As the trading day closed on Friday, all major U.S. indexes recorded significant increases, with the S&P 500 and Nasdaq appreciating by 1.5% each, while the Dow Jones Industrial Average rose by 1.4%. The technology sector led the surge, with notable gains from Microsoft and Nvidia, each climbing above 2%.The optimism was fueled by the Department of Labor's announcement that U.S. employers added 177,000 jobs in April, surpassing analysts' expectations, albeit with a slowdown in hiring compared to the previous month. Additionally, the unemployment rate remained steady at 4.2%. A vital sign of encouragement came from Beijing, which indicated it was considering Washington's proposal for trade negotiations. China is currently facing the highest import tariffs in history at 145%. Some analysts view the latest job figures as a sign that recession fears may be easing, particularly after recent Commerce Department data indicated a contraction in the U.S. economy for the first time in three years. Carl Weinberg, chief economist at High Frequency Economics, commented on the positive indicators, stating, "There is nothing to complain about here." He stressed that the figures do not suggest a beginning recession. Meanwhile, Seema Shah, chief global strategist at Principal Asset Management, expressed a cautious optimism, suggesting that while economic weakening may occur in subsequent months, the U.S. might avoid a recession if it can negotiate its way out of tariff conflicts.However, some experts caution that the full implications of Trump's tariffs will require more time to assess. "While the jobs report looks strong, the outlook remains very uncertain," remarked Olu Sonola, head of U.S. economic research at Fitch Ratings, highlighting a lingering level of risk amid the recovery.
