United States stocks closed higher on Friday (Saturday AEST), buoyed by positive economic data, strong corporate earnings and a possible easing of trade tensions with China.
The Dow Jones Industrial Average rose 564.47 points (1.39%) to 41,317.43 points, the S&P 500 put on 82.54 points (1.47%) to 5,686.68 and the Nasdaq Composite climbed 266.99 points (1.51%) to 17,977.73.
This brought the week’s gains by the three benchmarks to 2.9%, 3.0% and 3.4% respectively, cementing a second successive week of higher prices on Wall Street and producing the longest S&P winning streak in 20 years.
They also helped to reverse losses over the month caused by U.S. President Donald Trump’s ‘Liberation Day’ tariff announcements on 2 April.
The market was cheered by news that 177,000 jobs were created in April, which was more than forecast, and the unemployment rate was unchanged at 4.2%, which eased worries about an economic slowdown.
These concerns were raised by a Commerce Department report which showed a contraction in U.S. gross domestic product for the first time in three years.
"I do think what today is saying is that the economy is a lot stronger than people thought and a lot more resilient in the face of all of these tariffs and fears about tariffs," the Great Hill Capital Chairman was quoted in a Reuters story as saying.
Also helping investor sentiment was the Chinese government's statement on Friday that it was considering an offer to hold talks over Trump's 145% tariffs on Chinese imports.
The S&P 500 notched a ninth consecutive session of gains, matching a feat last achieved in 2004, and the Dow’s nine-day streak was the first since December 2023.
Apple shares fell after it scaled back its share buyback program and warned of tariff costs and Amazon shares eased on disappointment about its outlook statement. But other "Magnificent Seven" stocks fared better, with Meta Platforms and NVIDIA rising.
U.S. government bond yields increased after stronger than expected jobs data pushed back expectations of an interest rate cut to July. The 10-year rate rose eight points to 4.31% and the two-year rate gained 12 points to 3.82%.
