Despite the ongoing effects of tariffs imposed by President Trump, Wall Street's recent performance reflects an optimistic outlook, driven by positive job growth and potential trade negotiations.
Wall Street Rebounds as Economy Shows Unexpected Resilience
Wall Street Rebounds as Economy Shows Unexpected Resilience
US Stock Market Sees Longest Winning Streak in 20 Years Amid Job Growth and Trade Talk Hopes
In a remarkable turnaround, Wall Street has recovered from the losses caused by President Donald Trump's global tariffs implemented a month ago, achieving its longest winning streak in two decades. The gains over nine consecutive days mark a first since 2004, driven by a stronger-than-anticipated jobs report that sparked renewed hope for US-China trade discussions.
At market close on Friday, major US indexes finished significantly higher, with the S&P 500 and Nasdaq climbing 1.5% each, and the Dow Jones Industrial Average increasing by 1.4%. The technology sector led the rally, with giants like Microsoft and Nvidia seeing rises of over 2%.
The Department of Labor's announcement of 177,000 new jobs added in April surpassed analysts' expectations, although it was indicative of a slowdown in hiring compared to the previous month. The unemployment rate remained stable at 4.2%, further bolstering investor confidence.
In a positive development, Beijing expressed its willingness to consider Washington's proposal for trade talks, which is vital given China's staggering 145% import tax rate. Some analysts view these job statistics as a mitigating factor against recession worries, particularly following recent commerce department data that suggested a contraction in the US economy for the first time in three years.
Carl Weinberg, chief economist at High Frequency Economics, asserted that the data does not signal an emerging recession. Similarly, Seema Shah, chief global strategist at Principal Asset Management, noted that although a weakening economy is anticipated in the coming months, the current momentum could help the US sidestep a recession if tariff disputes are resolved swiftly.
Contrarily, some experts caution that the true effects of Trump's tariffs will become clearer over time. Olu Sonola, head of US economic research at Fitch Ratings, emphasized the ongoing uncertainty surrounding the outlook despite the strong job report.
