Wall Street recovers after tariffs disrupted the market a month ago, leading to a strong nine-day rally—its longest winning streak since 2004. This turnaround was fueled by upbeat job numbers and renewed hope for trade negotiations between the US and China.
All three major US stock indexes closed higher on Friday. The S&P 500 and Nasdaq both climbed 1.5%, while the Dow Jones rose 1.4%. Technology stocks led the gains, with Microsoft and Nvidia both advancing more than 2%.
Positive Jobs Report Lifts Confidence
The US Labor Department reported 177,000 new jobs in April. While this was slightly lower than the previous month, it beat expectations. The unemployment rate remained steady at 4.2%, signaling resilience in the labor market.
Economists reacted positively. Carl Weinberg of High Frequency Economics wrote, “There is nothing to complain about here.” He emphasized that the data shows no signs of an imminent recession.
US-China Trade Talks Renew Hope
A major factor in the market’s rebound was China’s willingness to engage in trade discussions. Beijing indicated it is considering a US offer for talks. This eased fears that prolonged tariffs would trigger a deeper economic slowdown.
China currently faces the highest import taxes globally, at 145%. Any progress toward resolution is seen as a win for global markets.
Seema Shah, chief global strategist at Principal Asset Management, said the momentum could help. “If the US steps back from the tariff brink, it has a chance to avoid recession,” she said.
Wall Street’s Path Forward Still Uncertain
Despite gains, uncertainty remains. Olu Sonola from Fitch Ratings noted, “While the jobs report is strong, the outlook remains very uncertain.”
Some experts warn that the full economic impact of tariffs has yet to be fully realized.
Still, Wall Street recovers after tariffs with renewed confidence, showing the market’s ability to bounce back when given positive signals.
The current rally shows how critical economic indicators and diplomacy are to investor confidence. Wall Street recovers after tariffs with help from strong employment data and a potential easing in trade tensions.
While long-term risks remain, this comeback offers cautious optimism for both investors and policymakers.
