NEW YORK, May 2 (Xinhua) — U.S. stocks extended gains on Friday, as a stronger-than-expected jobs report reassured investors about the economy’s resilience.
The Dow Jones Industrial Average gained 564.47 points, or 1.39 percent, to close at 41,317.43. The S&P 500 rose 82.53 points, or 1.47 percent, to 5,686.67, fully erasing losses incurred since U.S. President Donald Trump‘s tariff announcement on April 2. The Nasdaq Composite Index added 266.99 points, or 1.51 percent, to end at 17,977.73.
All 11 major sectors in the S&P 500 closed in the green. Communication services led the gains with an increase of 2.30 percent, followed by financials, which rose 2.15 percent. Consumer staples posted the smallest gain, edging up 0.60 percent. It also marks S&P 500 notching its longest winning streak since November 2004.
The rally was fueled by the April U.S. nonfarm payrolls report, which showed 177,000 jobs added, topping the 133,000 forecasted by economists surveyed by Dow Jones. Although the figure marked a slowdown from March’s 228,000, it eased fears of a sharp downturn. The unemployment rate remained steady at 4.2 percent, in line with expectations.
“Markets breathed a sigh of relief this morning as the jobs data came in better than expected,” said Chris Zaccarelli, chief investment officer at Northlight Asset Management. “While recession fears are still simmering on the back burner, the buy-the-dip dynamic can continue – at least until the tariff pause runs out.”
Adding to the day’s developments, China stated earlier Friday that it is evaluating recent overtures from U.S. officials regarding trade talks, suggesting a possible shift in diplomatic tone. This came amid hopes that ongoing tariff pressures might ease in the coming weeks.
“We think we’ve passed peak tariff tantrum,” Jay Hatfield of Infrastructure Capital Advisors said in an interview with CNBC, adding that he has a year-end target on the S&P 500 of 6,600. That implies nearly 18 percent upside from Thursday’s close.
Investors also digested earnings from two members of the “Magnificent Seven.” Apple dropped 3.74 percent after missing revenue expectations in its services division and warning of an additional 900 million U.S. dollars in costs this quarter due to tariffs. Amazon shares saw a slight drop of 0.12 percent after beating first-quarter estimates, although the company issued cautious guidance, citing concerns over tariffs and trade policy.
