Wall Street Rebounds as Investor Optimism Grows Amid Trade Talks

Wall Street is enjoying a remarkable rebound as optimism surrounding economic data and trade discussions offers relief to investors following recent tariff-induced declines.

Wall Street has rebounded from losses caused by President Donald Trump’s global tariffs, marking the longest winning streak for US stocks in two decades. The market gained for the ninth consecutive day, a feat not observed since 2004, fueled by a surprisingly strong jobs report and optimism about upcoming US-China trade talks. When the market closed on Friday, all major US indexes rose: the S&P 500 and Nasdaq surged by 1.5%, while the Dow Jones Industrial Average rose by 1.4%. Notably, the technology sector led this resurgence, with Microsoft and Nvidia both seeing increases exceeding 2%.

The Department of Labor reported that US businesses added 177,000 jobs in April, significantly surpassing analysts' expectations, although hiring slowed compared to the previous month. The unemployment rate remained unchanged at 4.2%, providing a boost for investors. Additionally, Beijing's recent announcement considering a US proposal for trade discussions also contributed to growing investor confidence.

China faces substantial import taxes, reaching 145%, which creates a backdrop of tension in trade relations. Analysts view the latest job figures as a sign that recession fears may be easing; Carl Weinberg from High Frequency Economics pointed out that the data does not indicate any signs of an impending recession.

However, while some experts express optimism, caution remains as the full impact of the tariffs is expected to unfold over time. Olu Sonola, head of US economic research at Fitch Ratings, acknowledged the strong jobs report but noted that uncertainty still looms over the economic outlook.