U.S. stock markets made a strong recovery this week, reversing losses caused by recent global tariffs. The rebound marks the longest winning streak for Wall Street in more than 20 years.
On Friday, the S&P 500 and Nasdaq each rose 1.5%, while the Dow Jones Industrial Average climbed 1.4%. These gains came after a positive U.S. jobs report and growing hopes that trade talks between the U.S. and China may resume soon. The market has now seen nine straight days of gains, the longest streak since 2004.
Tech stocks lead the way
The technology sector showed the biggest growth. Microsoft and Nvidia both gained over 2% on Friday. Investors were encouraged by the strong performance of tech giants, which often serve as indicators of overall market health.
Strong jobs report boosts market confidence
The U.S. Department of Labor announced that 177,000 new jobs were added in April. This number was higher than analysts had expected, even though it showed a slower pace compared to the previous month. The unemployment rate stayed steady at 4.2%.
Many experts saw the jobs report as a sign that the U.S. economy remains strong. It also helped ease fears of a possible recession, especially after recent data showed a small contraction in economic growth.
China signals openness to trade talks
Investor confidence also improved after China said it was open to new trade talks with the U.S. Beijing’s willingness to negotiate gave hope that tensions between the two countries might ease.
China currently faces the highest import taxes among U.S. trade partners, with tariffs at around 145 percent. These tariffs were introduced by President Donald Trump a month ago and had triggered stock market losses. According to inews.best, many financial analysts believe that resolving trade disputes could further lift stock performance.
Uncertainty remains despite positive signs
Some analysts remain cautious. They say that while the jobs report was strong, the full impact of the tariffs is still unknown. Economic uncertainty continues to be a concern, and markets could react quickly to any new policy changes.
It may take several months before the effects of the tariffs are clearly seen across the economy. Until then, investors will remain alert to new data and developments.
Historical context shows rare rally
Nine straight days of stock market gains is not common. The last time this happened was in 2004. Experts say that such streaks often show high investor confidence and strong economic signals.
The combination of steady job growth, stable unemployment, and a possible improvement in trade relations has helped the market recover after weeks of ups and downs.
Broader economic picture
Earlier this week, the U.S. Commerce Department reported a slight drop in economic output, the first decline in three years. Despite that, the new labor data has given investors some comfort.
If the U.S. and China can reduce tensions and avoid a deeper trade conflict, many believe the U.S. economy may stay on a steady path. Growth may slow, but a recession could be avoided if trade risks are reduced.
