US stocks surged on Friday after a stronger-than-expected April jobs report eased recession concerns and bolstered confidence in the economy.
The Dow Jones Industrial Average gained 384 points, or 0.9%, while the S&P 500 climbed 0.9%, extending its rally and putting the benchmark index on track for its longest winning streak in over two decades.
The Nasdaq Composite also advanced 0.8%, reflecting broad optimism across markets.
Strong jobs report boosts investor sentiment
April’s nonfarm payrolls grew by 177,000, handily beating the 133,000 expected by economists surveyed by Dow Jones.
While the figure was lower than March’s revised 185,000, it was enough to calm nerves around a potential slowdown.
The unemployment rate held steady at 4.2%, meeting expectations and reinforcing the view that the labor market remains resilient.
The upbeat report led traders to push back expectations for a Federal Reserve rate cut.
According to the CME FedWatch Tool, investors now anticipate the next rate reduction in July, removing a June cut from immediate forecasts.
Market pricing continues to suggest three to four rate cuts for 2025, depending on economic developments.
S&P 500 nears historic milestone
The S&P 500’s performance on Friday placed it on course for a nine-day winning streak—its longest since November 2004.
Strong corporate earnings and easing trade tensions have contributed to the rally, with the S&P up 2.3% this week.
The Dow is tracking a 2.5% weekly gain, while the Nasdaq is up 2.7%.
Positive sentiment was further lifted by reports that China may reopen trade negotiations with the US, although Beijing reiterated its demand for the removal of unilateral tariffs.
Apple and Amazon earnings in focus
Among mega-cap tech stocks, Apple slid 4% after reporting disappointing services revenue and warning of $900 million in additional tariff-related costs for the current quarter.
Amazon hovered near the flatline, with better-than-expected Q1 results tempered by conservative forward guidance that cited risks from trade policy changes.
Chevron falls on weaker profits
Shares of oil giant Chevron fell more than 2% after the company reported a sharp 30% drop in Q1 profits due to falling oil prices.
Chevron posted earnings of $3.5 billion, or $2 per share, down from $5.5 billion a year earlier.
While earnings excluding one-time items matched Wall Street expectations at $2.18 per share, weak oil demand and oversupply concerns weighed on sentiment.
Looking ahead, investor attention will remain focused on Federal Reserve policy, geopolitical developments, and the continuation of Q1 earnings season.
The resilience in US jobs data, combined with trade-related headlines, will likely shape market momentum in the weeks ahead.
As Wall Street eyes a potential turning point, the next few sessions will be critical in determining whether the current rally has room to extend.
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