On Friday, May 2, 2025, U.S. stock markets closed with significant gains, driven by a robust April jobs report and positive developments in U.S.-China trade relations.(WSJ)
Market Performance:
- S&P 500: Gained 1.5%, marking its ninth consecutive day of gains—the longest streak since 2004. (WSJ)
- Dow Jones Industrial Average: Increased by 1.3%.
- Nasdaq Composite: Rose over 1.3%. (WSJ)
Key Drivers:
- Employment Data: The U.S. economy added 177,000 jobs in April, surpassing expectations, while the unemployment rate held steady at 4.2%. (WSJ)
- Trade Relations: Reports indicated that China is considering actions to address U.S. concerns over fentanyl and may initiate talks to ease trade tensions, contingent upon the removal of unilateral tariffs. (WSJ)
- Federal Reserve Leadership: President Trump’s decision not to remove Fed Chair Jerome Powell provided additional reassurance to investors. (WSJ)
Sector Highlights:
- Technology: Mixed earnings reports led to volatility. Apple projected up to $900 million in added costs due to tariffs, causing its stock to decline by 3.7%. Amazon’s cautious forecasts also disappointed investors. (WSJ)
- Financial Technology: Block Inc., the parent company of Cash App, reported weaker consumer spending and missed profit estimates, resulting in a 20% drop in its share price. (WSJ)
Outlook:
While the markets have shown resilience, analysts caution that renewed tariff threats could quickly reverse the positive momentum. (WSJ)
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