Editor
The stock market rally continued impressively on Friday, with major indices extending their winning streak as investors responded positively to better-than-expected employment figures and potential progress in US-China trade relations.
Stock Market Rally Extends to Ninth Consecutive Day
The S&P 500 (^GSPC) climbed 1.6%, positioning itself for a ninth consecutive positive session—a stock market rally duration not witnessed since November 2004. Similarly, the Dow Jones Industrial Average (^DJI) advanced 1.5%, gaining over 600 points and matching the S&P 500 with its own ninth straight winning day. The tech-heavy Nasdaq Composite (^IXIC) demonstrated even stronger performance, rising approximately 1.8%.
Economic Data Supports Stock Market Rally
April’s employment report exceeded analyst expectations, reinforcing the resilience of the labor market despite recent market volatility following President Trump’s “Liberation Day” reciprocal tariff announcements. The US economy added 177,000 nonfarm payrolls last month, substantially outpacing economists’ projections of 138,000 new jobs. Meanwhile, the unemployment rate remained stable at 4.2%.
US-China Trade Developments Fuel Market Optimism
Contributing significantly to the ongoing stock market rally, China announced on Friday that it is evaluating recent trade overtures from US officials to determine the seriousness of the Trump administration’s policy shift. In a promising development, China’s commerce ministry stated that the “door is open” for negotiations if the United States agrees to reconsider its reciprocal tariff strategy, potentially clearing the path for formal trade discussions.
These developments helped alleviate concerns that tariffs would trigger an economic slowdown—a possibility that had been highlighted in recent earnings reports from tech giants Apple (AAPL) and Amazon (AMZN).
Tech Giants Navigate Tariff Concerns
Despite reporting quarterly earnings that exceeded expectations, Apple warned of a $900 million tariff-related headwind for the current quarter and reduced its share buyback program by $10 billion. This announcement initially pressured Apple’s stock price in early trading sessions.
Amazon shares, however, demonstrated resilience after initially declining on disappointing guidance that specifically cited tariff and trade policy as contributing factors. By mid-session, Amazon had reversed earlier losses and moved into positive territory.
Market Outlook Amid Continued Rally
The current stock market rally reflects investors’ growing confidence that economic fundamentals remain strong despite trade tensions. The combination of robust employment data and potential diplomatic progress with China has created a favorable environment for equities, allowing major indices to achieve remarkable consecutive gains not seen in decades.
