Wall Street surged after a better-than-expected jobs report, helping the S&P 500 record its longest winning streak since 2004.
The S&P 500 closed up 1.47%. This was the ninth consecutive day of gains for the index - the longest since November 2004. The DJIA rose 1.39%. The Nasdaq Composite rose as much as 1.51%.
The S&P 500 has thus recovered all the points lost since the April 2 session - when President Donald Trump announced the reciprocal tax. The Nasdaq Composite also did this one session earlier.
The US economy added 177,000 jobs in April, higher than analysts had forecast, according to a report released by the US Department of Labor on May 2. Although lower than March's figures, the report was still welcomed amid rising recession fears. The unemployment rate remained unchanged at 4.2%.
"The market breathed a sigh of relief when the jobs data beat expectations. Although recession fears remain, the trend of buying at the bottom may continue, at least while the US postpones reciprocal tariffs," said Chris Zaccarelli, chief investment officer at Northlight Asset Management.
Before the jobs report was released, investor sentiment improved after China said it was assessing the possibility of starting trade negotiations with the US. However, Beijing still asked Washington to remove all import tariffs. "If the US wants to negotiate, it needs to show sincerity, correct its mistakes, and cancel unilateral tariffs," China's Ministry of Commerce said.
Wall Street also paid attention to the business results of two tech giants, Apple and Amazon. Apple warned that this quarter's costs could increase by $900 million due to import tariffs. Meanwhile, Amazon's shares fell slightly after the company issued a cautious forecast, emphasizing the impact of "tax and trade policies".
The US stock market has recovered impressively since Mr. Trump announced a delay in imposing high reciprocal tariffs, bringing tariffs on most trading partners to 10% for 90 days. In recent days, Wall Street has risen sharply thanks to a series of positive financial reports, contributing to the S&P 500's winning streak.
Over the week, all three major indexes recorded their second consecutive weekly gain. The S&P 500 rose 2.9%, the DJIA 3%, and the Nasdaq 3.4%.
(according to Reuters, CNBC)