Wall Street Extends Gains Amid Optimism Over US - China Trade Talks and Strong Jobs Report - Friday, 2nd May

Key Points

• S&P 500 has erased post-'liberation day' losses
• U.S. added 177k jobs in April, unemployment rate at 4.2%
• China confirms U.S. officials have reached out for trade talks

Wall Street Extends Rally

U.S. equity markets ended the week on a strong note, with the S&P 500 and Nasdaq 100 rising 1.47% and 1.6%, respectively, on Friday. It marked the second consecutive week of gains and the S&P 500’s longest winning streak in 20 years. Investors largely brushed off April’s tariff-driven sell-off and found renewed optimism in fresh diplomatic signals between the U.S. and China.

Charging Bull Photo by fabio Spano on Unsplash

Labor Market Stays Resilient Despite Trade Uncertainty

• 8:30 AM ET - U.S. Non-farm Payrolls (April) Forecast: 138k | Previous: 228k | Actual 177k
• 8:30 AM ET - U.S. Unemployment Rate (April) Forecast: 4.2% | Previous: 4.2% | Actual 4.2%

April’s jobs report delivered a dose of stability, showing the labor market remains healthy even as businesses weigh the impact of ongoing trade disputes. The US economy added 177,000 jobs in April, while the unemployment rate held firm at 4.2%, according to figures from the Bureau of Labor Statistics. The latest data helped ease recession concerns and supported the market’s recent upward momentum.

However, some economists caution that the tariff-driven slowdown may not yet be fully reflected in April’s numbers—suggesting May’s data could provide a clearer picture of trade impacts on the labor market.

US unemployment rate chart source: bls.gov

Beijing Signals Openness to Talks, Eases Tariffs

Hopes for renewed diplomatic engagement between the U.S. and China boosted investor sentiment. China’s Commerce Ministry acknowledged that senior U.S. officials have repeatedly expressed their willingness to engage with Beijing on tariff discussions. In a separate move, China has removed tariffs on roughly $40 billion worth of U.S. imports, a gesture viewed as an effort to stabilize its economy amid ongoing geopolitical tensions.

Mag 7: Apple Drops, Meta Surges

Apple’s shares fell nearly 3.8% today after reporting earnings in line with expectations. Performance in China fell short of expectations, with regional revenue dropping 2.3% to $16 billion. The company also warned of an additional $900 million in costs this quarter due to tariffs. The decline followed a downgrade from Jefferies, which cited concerns over rising tariff-related costs and weakening sales in China.

Amazon initially dropped 2% following cautious forward guidance, but managed to trim its losses by the end of the session. In contrast, Meta surged more than 4%, leading the group, and is now joined by Microsoft in posting positive annual returns. Despite the recent rally, some tech heavyweights continue to underperform. Tesla remains the year’s worst performer among Mag 7 names, down about 28% year-to-date. Apple follows with an 18% decline, while Nvidia is off roughly 15% so far in 2025.

Year-to-date performance of Mag 7 stocks, source: Market Page Mag-7

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