Key Events
Pinned Post
The S&P 500 opened the day on pace for its longest winning streak in over 20 years after the April jobs report showcased a resilient labor market despite rising worries among businesses and consumers in recent months.
The market benchmark rose 1% to start the day. The Dow Jones Industrial Average gained 430 points, or 1.1%. The Nasdaq Composite jumped 0.9%.
The Dow and S&P have both risen for eight days in a row. The S&P hasn’t had a streak that long since the nine days ending Nov. 2004, while the Dow is on pace for its longest winning streak since Dec. 19, 2023.
Stocks were already rising on hopes that the U.S.’s trade tension with China will ease, but their gains accelerated after the Bureau of Labor Statistics said the U.S. economy added 177,000 jobs in April. That was ahead of expectations at 135,000, according to FactSet.
“Although markets had braced for a slowdown in job growth—due to factors like DOGE job cuts, increased immigration reform, and soft economic indicators—private sector hiring has remained resilient,” writes Kevin O’Neil, associate portfolio manager and senior research analyst at Brandywine Global. “The stronger-than-expected employment figure gives the administration more breathing room in its trade negotiations, as risk assets are likely to respond favorably.”
Bond yields ticked higher after the report, as traders bet the Federal Reserve would hold interest rates steady, at least until June.
“Unfortunately for those wanting lower rates, this beat will make it hard to see the Fed pushing cuts up earlier in the year,” writes Lara Castleton, US head of portfolio construction and strategy at Janus Henderson Investors. “Fixed income markets are adjusting back to the higher for longer narrative.”
