US stocks have seen their longest winning streak in two decades, with the tech sector leading the way, as investors breathe a sigh of relief over improved jobs data and renewed hopes for US-China trade talks.
Shares have seen gains for the ninth day in a row, marking the longest winning streak in two decades for US stocks. The tech sector made the biggest gains, with Microsoft and Nvidia growing by more than 2%.
A better-than-expected jobs report and rising hope of US-China trade talks were key factors contributing to the market’s recovery. Major US indexes were all up when the market closed on Friday, with the S&P 500 and Nasdaq rising 1.5%, while the Dow Jones Industrial Average increased 1.4%.
The Department of Labor reported that US employers added 177,000 new jobs in April, outpacing analysts’ predictions. Although it was a slowdown in hiring from the month beforehand, the unemployment rate remained steady at 4.2%. This data has sparked optimism among investors, with many experts believing that the US economy is less likely to suffer a recession.
Trade Talks and Tariff Uncertainty
Beijing‘s announcement that it is considering an offer from Washington to hold trade talks with the US has also boosted investor sentiment. The news comes as China faces the highest import taxes by far, at 145%. For some analysts, this development has helped to alleviate concerns about a potential recession.
Carl Weinberg, chief economist at High Frequency Economics, noted that ‘there is nothing to complain about here‘ and that there was no evidence of a nascent recession in the jobs figures. Seema Shah, chief global strategist at Principal Asset Management, echoed this sentiment, stating that the economy will weaken in the coming months but has a decent chance of avoiding recession if it can step back from the tariff brink.
Carl Weinberg is a renowned American economist and market strategist.
He serves as the Chief Market Strategist at High Tide Consultants, providing analysis and insights on global economic trends.
Weinberg has been featured in various media outlets, including Bloomberg, CNBC, and Fox Business, for his expertise on commodities, interest rates, and monetary policy.
With over three decades of experience in the field, he is widely respected for his accurate forecasts and in-depth knowledge of global financial markets.
However, other experts remain cautious, warning that the full effect of Trump’s tariffs will take time to materialize. Olu Sonola, head of US economic research at Fitch Ratings, cautioned that ‘the outlook remains very uncertain.’ Despite this uncertainty, the recent market recovery has provided a glimmer of hope for investors.
