In brief
Wall Street has witnessed a remarkable recovery, bouncing back from losses attributed to President Donald Trump's global tariff imposition a month ago. For the first time since 2004, U.S. stocks marked a nine-day winning streak, ending positively as major indexes surged. The Dow Jones Industrial Average rose by 1.4%, while the S&P 500 and Nasdaq climbed 1.5% each. The tech sector led the way, with significant gains in companies like Microsoft and Nvidia, both exceeding a 2% increase.
This resurgence followed the release of a labor report showing that U.S. employers added 177,000 jobs in April, surpassing analysts' expectations, albeit indicating a slowdown in hiring from the previous month. The unemployment rate remained stable at 4.2%. Market optimism was further fueled by China's consideration of U.S. proposals for trade discussions, even as they currently face the highest import tariffs globally. Experts are cautiously optimistic, interpreting the job report as a sign that recession fears may be alleviated, despite signs of contraction in the economy earlier this week. Carl Weinberg, chief economist at High Frequency Economics, remarked there were no indications of a looming recession based on the latest employment data. Seema Shah, principal global strategist at Principal Asset Management, echoed this sentiment, highlighting that while the economy could weaken, timely action against tariffs could avert a recession. However, others warn that the full outcomes of the tariffs will take time to manifest, maintaining that the economic outlook remains uncertain.
