The stock market rallied on Friday, with the S&P 500 posting its longest winning streak in 20 years. The index advanced 1.47% to close at 5,686.67, marking its ninth consecutive day of gains. This is the longest run since November 2004.
The Dow Jones Industrial Average climbed 564.47 points, or 1.39%, to end at 41,317.43. The Nasdaq Composite gained 1.51% to settle at 17,977.73. The strong performance came after a better-than-expected nonfarm payrolls report for April.
The report showed an increase of 250,000 jobs, exceeding the expected 200,000. This helped ease investors’ recession fears.
“Markets breathed a sigh of relief this morning as the jobs data came in better than expected,” said Chris Zaccarelli, chief investment officer at Northlight Asset Management.
Investors were also upbeat before the jobs report, as China indicated a willingness to negotiate with the U.S. on trade issues. Chinese authorities reaffirmed their stance that the U.S. should remove all unilateral tariffs. The market reacted to earnings reports from key companies as well.
Apple shares slid 3.7% after the company announced higher-than-expected costs due to tariffs, despite strong earnings.
#NewsFatafat | Wall Street ends the week strong! S&P 500 marks longest winning streak in 20 years, fueled by upbeat April payrolls report. 📈🇺🇸 #StockMarket #SP500 #WallStreet #JobsReport pic.twitter.com/qWpPh3419C
— ET NOW (@ETNOWlive) May 3, 2025
Amazon shares dipped slightly after the company provided soft guidance for the current period, citing potential impacts from tariffs and trade policies.
Jay Hatfield of Infrastructure Capital Advisors believes the worst of the market’s reactions to tariff news might be over. “We think we’ve passed peak tariff tantrum,” said Hatfield, adding that he expects a summer rally. Despite the positive market movement, analysts remain cautious about the economic outlook.
The S&P 500 has recovered all of its post-'Liberation Day' losses.
It ended up 2.92% this week and 7.65% over the last two weeks, the largest two-week gain since October 2022. pic.twitter.com/suAggnfeoH
— Nick Timiraos (@NickTimiraos) May 2, 2025
Jobs report boosts market optimism
Emmanuel Cau of Barclays noted that while earnings are holding up, many companies are lowering guidance and capital expenditure intentions. This signals that the market could face challenges if a recession becomes unavoidable. Oil prices fell more than 1% in commodities as OPEC+ is set to meet on Saturday to discuss June output levels.
The continued increase in oil output has led to a steep price decline, with Brent crude futures down 8% for the week. Other notable market movements included a surge in Duolingo shares, which rose more than 18% after the company guided toward a better-than-expected revenue forecast. Conversely, Apple shares fell by 4% amidst concerns over rising costs due to tariffs.
Markets finished higher on Friday, ensuring a positive end to a volatile week. The S&P 500 added 2.9% over the week, while the Dow and Nasdaq posted gains of 3% and 3.4%, respectively. Despite ongoing concerns surrounding tariffs, the strong jobs report and robust earnings have fueled investor optimism.
However, caution remains as discussions around trade policies and potential recession risks unfold.
Image Credits: Photo by Tyler Prahm on Unsplash
