Wall Street Rises After Strong April Jobs Report/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks climbed Friday morning after April’s jobs report showed stronger-than-expected hiring. The S&P 500 is on pace for a ninth consecutive gain, led by tech and financial shares. Investors remain cautious, however, as Trump’s delayed tariffs loom over the economic outlook.
Wall Street Rises After Jobs Report: Quick Looks
- S&P 500, Dow, Nasdaq all rose 0.8% in early trading
- April job growth hit 177,000, topping economists’ estimates
- Microsoft, Nvidia, JPMorgan, and Visa led market gains
- Broad rally reflects optimism in tech and financial sectors
- Trump’s tariff delays ease short-term investor concerns
- First quarter GDP shrank 0.3% amid pre-tariff import surge
- Exxon and Chevron posted weak Q1 earnings due to low oil prices
- 10-year Treasury yield ticked up to 4.27%
Deep Look: Wall Street Climbs on Job Growth Surprise, Cautious Optimism Ahead
NEW YORK — Wall Street saw a broad rally Friday morning, buoyed by a better-than-expected U.S. jobs report that helped momentarily ease fears of an economic downturn amid ongoing trade tensions. The S&P 500 rose 0.8%, heading toward its ninth straight session of gains, while the Dow Jones Industrial Average jumped 316 points. The Nasdaq Composite also advanced 0.8%.
Investors responded positively to the Labor Department’s report showing that employers added 177,000 jobs in April, beating expectations of around 135,000. While this marked a slight deceleration from March’s revised 185,000 figure, the overall labor market continues to show resilience.
Markets Driven by Tech and Financials
Technology and financial stocks led the charge. Microsoft climbed 2.6%, Nvidia added 2.1%, and JPMorgan Chase rose 1.3%. Visa posted a solid 1.8% gain, helping to lift the financial sector.
The rally reflected renewed confidence that consumer spending and economic activity might remain stable—at least in the near term—despite looming headwinds from President Donald Trump’s global trade policy.
Tariff Delays Buoy Markets, But Concerns Linger
April’s job report does not yet reflect the full impact of Trump’s sweeping tariffs, which were initially set to begin last month but were delayed by 90 days. Analysts warn that the economic picture could darken once the 145% tariffs on Chinese goods and other global levies take full effect.
The U.S. economy contracted 0.3% in the first quarter, largely due to a rush of pre-tariff imports. Businesses, anticipating cost spikes, stockpiled goods, temporarily inflating inventory data but distorting organic demand and growth.
“Companies are flying blind,” said a market strategist. “They don’t know what their costs will be next quarter, and that’s starting to show in cautious earnings guidance and spending cuts.”
Business Forecasts and Consumer Outlook at Risk
Uncertainty surrounding tariff enforcement has already prompted many companies to withdraw earnings forecasts, citing unpredictability in supply chains and input costs. Economists fear that the ripple effects of rising costs will eventually weigh on consumer sentiment and slow job creation.
While hopes linger that Trump could rollback some tariffs amid ongoing negotiations—particularly with China—Beijing has maintained that the U.S. must first lift unilateral trade measures before meaningful talks can proceed.
Oil Sector Weakens, Bond Yields Tick Up
Despite the broader market rally, energy stocks lagged. ExxonMobil dropped 0.3% after reporting its lowest Q1 profit in years, and Chevron barely edged up 0.3% on similarly weak earnings. Both companies were hit by falling U.S. crude oil prices, now down 18% this year. West Texas Intermediate crude dipped below $60 per barrel, a breakeven point for many producers.
In the bond market, the 10-year Treasury yield rose to 4.27%, up from 4.22% the previous day, reflecting expectations that interest rates could stay higher for longer if inflation remains sticky or the economy doesn’t slow as quickly as anticipated.
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