Wall Street stocks buoyed by strong economic data
The US economy added 177,000 jobs in April, exceeding expectations, while the unemployment rate held steady at 4.2 per cent. The data helped to assuage concerns of a economic slowdown following a Commerce Department report, showing a contraction in US gross domestic product for the first time in three years, weighed down by a tariff-induced flood of imports.
"The stock market is cheering this morning's payroll report but I have to point out that job growth did slow on the month and I haven't seen too many comments about that," said Talley Leger, chief market strategist at The Wealth Consulting Group.
"I was a bit surprised because I was expecting a sharper slowdown given that non-farm payroll survey happened the week after the tariffs were announced. So I think the market is taking this in a positive light."
Beijing on Friday said it was evaluating an offer from Washington to hold talks over President Donald Trump's 145 per cent tariffs, which he had imposed on Chinese imports.
The tit-for-tat tariffs between the world's two largest economies have kept investors on edge, with both sides unwilling to be seen backing down in a trade war that has roiled global markets.
Still, Trump's reversal of some tariffs has helped US stock indexes recover from recent losses. The S&P 500 has erased the slump set off by Trump's "Liberation Day" tariff announcement on April 2, with the index now up 0.3 per cent since the close of April 2. The tech-heavy Nasdaq was trading at levels last seen before April 2.
The S&P 500 also reached its ninth consecutive session of gains, matching a winning streak from 2004, while the Dow hit a nine-day winning streak for the first since December 2023. For the week, the S&P 500 gained 2.9 per cent, the Dow climbed 3.0 per cent, and the Nasdaq added 3.43 per cent.
The Dow Jones Industrial Average rose 564.47 points, or 1.39 per cent, to 41,317.43, the S&P 500 gained 82.54 points, or 1.47 per cent, to 5,686.68 and the Nasdaq Composite gained 266.99 points, or 1.51 per cent, to 17,977.73.
"I do think what today is saying is that the economy is a lot stronger than people thought and a lot more resilient in the face of all of these tariffs and fears about tariffs," said Thomas Hayes, chairman at Great Hill Capital in New York.
Apple fell nearly 4.0 per cent after the iPhone maker trimmed its share buyback program by $US10 billion ($A16 billion) and CEO Tim Cook told analysts that tariffs could add about $US900 million ($A1.4 billion) in costs this quarter.
Other so-called Magnificent Seven stocks such as Meta Platform rose 4.3 per cent and Nvidia gained 2.6 per cent. Amazon dipped 0.1 per cent.
Chevron rose 1.6 per cent and ExxonMobil gained 0.4 per cent after both energy giants reported quarterly results.
Block slumped 20 per cent after cutting its profit forecast for 2025 and missing estimates for quarterly earnings.
Video game maker Take-Two Interactive fell nearly 7.0 per cent after it delayed the release of "Grand Theft Auto VI" to May 2026.
Advancing issues outnumbered decliners by a 3.81-to-1 ratio on the NYSE. There were 144 new highs and 47 new lows on the NYSE.
The S&P 500 posted 12 new 52-week highs and 3 new lows while the Nasdaq Composite recorded 51 new highs and 38 new lows.
Volume on US exchanges was 15.99 billion shares, compared with the 19.3 billion average for the full session over the last 20 trading days.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
AU Financial Review
5 hours ago
- AU Financial Review
China steps up tax crackdown on overseas investments
Hong Kong/Beijing | Chinese authorities have stepped up calls on investors to pay taxes on their global gains, forcing wealthy individuals to rethink their trading strategy as Beijing tries to fill its coffers to counter economic pressures. Tax authorities in major economic hubs such as Shanghai, Zhejiang and Shandong this year issued calls on their websites for investors to declare their taxes, while also calling and messaging individuals personally. Officials this month escalated the campaign with a big state media push.
Sydney Morning Herald
9 hours ago
- Sydney Morning Herald
Prime Minister says he remains hopeful of Russia, Ukraine ceasefire
'We want to see the sovereignty of Ukraine protected,' he said. 'It is a good thing that President Trump is an advocate for peace; what we want to see is that the sovereignty of Ukraine be protected and that the illegal and immoral invasion conducted by Mr Putin and Russia are not rewarded. 'It's important as well now for international rule of law. It's also important because of the precedent that Russia's invasion sets of a powerful nation invading a much smaller nation and engaging in the brutality - which we have seen at a great cost to the Ukrainian people, but also at a great cost to Russian soldiers who have lost their lives.' Albanese made the comments at a resources, science and technology showcase in Perth on Sunday, which was hosted by Seven West Media ahead of a planned economic roundtable next week. He said Western Australia is at the centre of the federal government's plans to transition to renewable energy, with the showcase is expected to attract about 20,000 people to highlight WA's resources, science, and technology industries. Loading 'We want to see a more productive, a more vibrant, a more dynamic Australian economy,' Albanese said. 'WA is at the centre of that.' Albanese pointed out it was his 36th visit to the state since he became Prime Minister. 'We understand that the jobs and the economic activity that is created here in the west is so important,' he said. 'What we're also seeing with this showcase is the way the industries are being transformed by new technology, by artificial intelligence - but at the front and centre of it all is of course our labour force.' The showcase comes ahead of the federal government's roundtable next week, which will advocates and experts from around the country to discuss ways to raise the country's productivity levels. 'What will happen over the next three days of the forum is that people will put forward ideas; they'll feed into government decision-making. 'There'll be some measures that can be adopted immediately if the government adopts it, and there'll be some that feed into budget processes, but there'll be some about the long-term challenges in the global economy [and] the impact in Australia.' Albanese said he intended to meet with industry leaders - including Seven West Media's chief and WesTrac and Coates Hire owner Kerry Stokes. When asked how he squared supporting the oil and gas industry with the government's net-zero policy, he said he was aiming for a 'sensible' transition. 'That is precisely what industry here and the resources sector here are committing too as well - we're working with industry on that transition because what that means is opportunities for jobs and growth here in Western Australia by contributing to our national economy.'
The Age
9 hours ago
- The Age
Prime Minister says he remains hopeful of Russia, Ukraine ceasefire
'We want to see the sovereignty of Ukraine protected,' he said. 'It is a good thing that President Trump is an advocate for peace; what we want to see is that the sovereignty of Ukraine be protected and that the illegal and immoral invasion conducted by Mr Putin and Russia are not rewarded. 'It's important as well now for international rule of law. It's also important because of the precedent that Russia's invasion sets of a powerful nation invading a much smaller nation and engaging in the brutality - which we have seen at a great cost to the Ukrainian people, but also at a great cost to Russian soldiers who have lost their lives.' Albanese made the comments at a resources, science and technology showcase in Perth on Sunday, which was hosted by Seven West Media ahead of a planned economic roundtable next week. He said Western Australia is at the centre of the federal government's plans to transition to renewable energy, with the showcase is expected to attract about 20,000 people to highlight WA's resources, science, and technology industries. Loading 'We want to see a more productive, a more vibrant, a more dynamic Australian economy,' Albanese said. 'WA is at the centre of that.' Albanese pointed out it was his 36th visit to the state since he became Prime Minister. 'We understand that the jobs and the economic activity that is created here in the west is so important,' he said. 'What we're also seeing with this showcase is the way the industries are being transformed by new technology, by artificial intelligence - but at the front and centre of it all is of course our labour force.' The showcase comes ahead of the federal government's roundtable next week, which will advocates and experts from around the country to discuss ways to raise the country's productivity levels. 'What will happen over the next three days of the forum is that people will put forward ideas; they'll feed into government decision-making. 'There'll be some measures that can be adopted immediately if the government adopts it, and there'll be some that feed into budget processes, but there'll be some about the long-term challenges in the global economy [and] the impact in Australia.' Albanese said he intended to meet with industry leaders - including Seven West Media's chief and WesTrac and Coates Hire owner Kerry Stokes. When asked how he squared supporting the oil and gas industry with the government's net-zero policy, he said he was aiming for a 'sensible' transition. 'That is precisely what industry here and the resources sector here are committing too as well - we're working with industry on that transition because what that means is opportunities for jobs and growth here in Western Australia by contributing to our national economy.'
