Wall Street stocks have made a strong recovery, bouncing back from the losses caused by the recent global tariffs announced by President Donald Trump. This comeback has also marked the longest winning streak for U.S. stocks in the last 20 years.
For the first time since 2004, U.S. shares have risen for nine straight days. Investors reacted positively to a better-than-expected jobs report and the growing hope that trade talks between the U.S. and China might resume soon.
On Friday, when the markets closed, all major U.S. indexes were up. The S&P 500 and Nasdaq both increased by 1.5%, while the Dow Jones Industrial Average saw a gain of 1.4%.
Among the top performers were tech giants like Microsoft and Nvidia, both of which rose by more than 2%.
The rally came after the U.S. Department of Labor shared its latest employment report. According to the data, American employers added 177,000 new jobs in April.
Although that number was lower than the previous month, it still surpassed what analysts had expected. The national unemployment rate remained steady at 4.2%.
Another factor that encouraged investors was a statement from Beijing. China announced that it was considering an offer from the U.S. government to resume trade discussions. Currently, China is facing the highest import taxes from the U.S., with rates as high as 145%.
The job numbers helped reduce some of the fears of an upcoming recession. Earlier this week, data from the U.S. Commerce Department showed a decline in the economy for the first time in three years. But many economists say the current job report tells a different story.
Carl Weinberg, chief economist at High Frequency Economics, wrote in a research note that there’s “nothing to complain about” in these numbers. He also added that there is no clear evidence of an approaching recession based on the latest data.
Seema Shah, who works as the chief global strategist at Principal Asset Management, also found the numbers promising.
She said that while the economy may slow down in the coming months, the strong job market means that the U.S. could still avoid a recession—if it manages to resolve trade issues in time.
However, not everyone is fully optimistic. Some experts believe it is still too early to understand the full impact of Trump’s tariffs. Olu Sonola, head of U.S. economic research at Fitch Ratings, told the BBC that while the latest jobs report looks good, the overall outlook remains uncertain.
Investors and analysts will be watching closely over the next few weeks. A lot depends on whether trade talks with China move forward and whether the U.S. economy continues to grow despite the challenges posed by the tariffs.
So far, the markets have responded with hope. The recent gains across the tech sector, steady job growth, and hints of trade negotiations have all helped rebuild investor confidence.
But as many experts have pointed out, the situation remains fragile, and it may take more time and clarity before everyone can be sure the recovery is here to stay.
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