Wall Street has seen a remarkable recovery from losses linked to President Donald Trump's global tariffs, marking a two-decade-long winning streak for US stocks.
Wall Street Rebounds as Stocks Shake Off Trump Tariff Woes
Wall Street Rebounds as Stocks Shake Off Trump Tariff Woes
US markets recover from losses due to tariffs, buoyed by strong job data and potential trade talks.
In a significant turn of events, Wall Street has managed to rebound from recent declines caused by the imposition of global tariffs instituted by President Donald Trump. The US stock market celebrated its longest winning streak in 20 years, gaining for the ninth consecutive day for the first time since 2004 on Friday. The rally was propelled by a surprising jobs report and growing optimism regarding potential trade negotiations between the US and China.
By the end of trading on Friday, all major US indexes reported gains, with the S&P 500 and Nasdaq increasing by 1.5%, while the Dow Jones Industrial Average showed a 1.4% rise. Significant growth was observed in the technology sector, with giants Microsoft and Nvidia climbing more than 2%.
The boost came after the Department of Labor revealed that US employers had added 177,000 new jobs in April, a figure that exceeded analysts' expectations, although it indicated a slowing rate of hiring compared to previous months. The unemployment rate remained steady at 4.2%, providing additional reassurance to investors.
Furthermore, Beijing's announcement that it was open to considering an offer from Washington to engage in trade conversations added to the positive sentiment in the markets. Despite facing a staggering 145% in import taxes, analysts noted that this development could lead to improved prospects for trade relations.
Economists expressed optimism regarding the job figures, with some, like Carl Weinberg, chief economist at High Frequency Economics, asserting, "There is nothing to complain about here... You cannot find any evidence of a nascent recession in these figures." Seema Shah, chief global strategist at Principal Asset Management, echoed this sentiment, suggesting the economy might face challenges in the near term but still holds a viable path to avoiding recession if the tariff situation is resolved soon.
However, some analysts urge caution, indicating that it will be necessary to wait and gauge the long-term impacts of Trump's tariffs on economic performance. Olu Sonola, head of US economic research at Fitch Ratings, pointed out that although the jobs report was strong, "the outlook remains very uncertain," highlighting the ongoing challenges that could affect the market in the future.
