The stock market has rebounded to its position prior to the announcement of tariffs by President Donald Trump on April 2, which had previously triggered a historic downturn. On Friday, the S&P 500 increased by 1.5%, closing the week at 5,687, surpassing its level just before Trump revealed his tariff plans. Concurrently, the Nasdaq rose by 1.5%, and the Dow Jones gained 1.4%. These gains mark the ninth consecutive day of rises for the S&P 500, ending the week positively for the three major stock indices.
The market’s upswing coincides with the Bureau of Labor Statistics’ report that the U.S. added 177,000 jobs in April. While this is a decrease from the 185,000 jobs added in March, it surpasses the 135,000 predicted by economists polled by FactSet. However, the April job figures probably do not yet reflect the full impact of Trump’s tariffs, as many have yet to be fully implemented.
A 145% tax on imports from China has already been enacted by Trump. Investors experienced some relief when China indicated its openness to negotiations with the Trump administration. Although conflicting statements have been issued by both governments regarding ongoing communication after the onset of the tariff battle, China’s willingness to negotiate might indicate progress towards a trade agreement.
The outlook for global markets remains uncertain. The Bureau of Economic Analysis reported a 0.3% decline in the U.S. gross domestic product, marking the first contraction in the American economy since the first quarter of 2022.
According to a note from Samuel Tombs and Oliver Allen, U.S. economists at Pantheon Microeconomics, a gradual increase in the unemployment rate is anticipated.
Major tech firms are voicing concerns about potential damage from Trump’s trade policies. The CFO of Block, which owns Cash App and Square, warned of a “pronounced shift in consumer behavior” during an earnings call in which the company missed quarterly profit forecasts, leading to a 20% drop in its stock.
Apple also cautioned about the financial implications of tariffs. During an earnings call, Apple CEO Tim Cook stated the new tax on imported supplies would cost the company an additional $900 million in the second quarter. Cook emphasized the company’s commitment to making thoughtful and deliberate decisions in managing its operations.
This report was originally featured on Fortune.com.
