Damian J. Troise, AP Business Writer
NEW YORK (AP) — Stocks rose in an afternoon trading on Wall Street on Friday following a stronger than expected report on the U.S. job market.
The S&P 500 got 1.5% and got the index on track for nine consecutive profits. This marks the longest winning streak in the Benchmark Index in 20 years.
The Dow Jones industrial average rose 571 points (1.4%) as of 1:10pm Eastern. Nasdaq Composite rose 1.6%.
The profits were wide. Approximately 90% of the stock and all sectors of the S&P 500 are sophisticated. Technology Stock was one of the heaviest lifting companies. Microsoft Rose 2.7%, and Nvidia rose 2.2%. However, Apple fell 4.2% after iPhone manufacturers estimated tariffs would cost $900 million.
Banks and other financial companies also made solid profits. JPMorgan Chase rose 2.5% and Visa rose 1.5%.
Employers added 177,000 jobs in April. It marks a slowdown in employment from March, but it was firmly superior to what economists expected. However, the latest work figures still do not reflect the economic impact of President Donald Trump’s full tariffs on his American trading partner. Many of the more serious tariffs that were supposed to come into effect in April were delayed by three months, with a notable exception to tariffs on China.
“We’ve already seen how financial markets will react if the administration goes ahead with its initial tariff plans. So, unless we get another tack in July when the 90-day suspension expires, we’ll see similar market behavior as in the first week of April.”
The S&P 500 fell 9.1% during the first week of April, as Trump announced a massive escalation of his trade war with more tariffs. Since then, the market has hoped to regain losses, to exclude a series of resilient revenue reports from US companies, and to remove trade tensions with China, and hopes the Federal Reserve can cut fees several times this year.
The job market is closely monitoring the signs of stress amid the tensions of the trade war. Strong employment has helped to drive solid consumer spending and economic growth over the past few years. Economists are now worried about the impact of import taxes on consumers and businesses, particularly whether higher costs will damage employment and spending.
The economy is already showing signs of stress. The US economy shrunk at a rate of 0.3% per year in the first quarter of the year. The surge in imports slowed down as businesses tried to preempt Trump’s tariffs.
The current tariffs and the nature of what Trump’s policies are being addressed overshadow businesses and household plans. Companies are reducing and withdrawing financial forecasts due to uncertainty about the amount of tariffs that narrows down consumers and SAP spending.
He hopes that Trump will roll back some of his tariffs after he negotiates trade deals with other countries. China is an important target, with tariffs of 145%. The Commerce Department said Beijing is evaluating a US overture on tariffs.
Investors had relatively quiet revenue reports after a busy week. Exxon Mobil fell 0.2% after reporting its lowest first quarter profit in a few years. Rival Chevron rose 1.1% after reporting its smallest first-quarter profit in a few years.
The decline in crude oil prices weighs in this sector. U.S. crude oil prices fall about 18% per year. They fell below $60 per barrel this week. This is at a level where many producers can no longer make a profit.
The block fell to 20.7% after reporting a sharp decline in first quarter profits that did not reach analyst forecasts. The financial technology companies behind the Cash app cited the withdrawal of consumer spending on travel and other discretionary items as the main reason for the outcome.
The Treasury has risen in the bond market. The 2010 Treasury yield rose to 4.32% from 4.22% in the second half of Thursday.
Original issue: May 2, 2025 8:53am EDT
