The US stock market saw a significant rise on Friday (2nd), with three major indices rallying, particularly the S&P 500 index performing brilliantly, closing higher for the ninth consecutive trading day, creating the longest winning streak in over 20 years. Two key driving forces supported this rally: first, the better-than-expected non-farm employment report, alleviating market concerns about potential economic slowdown; second, signs of easing US-China trade relations, boosting market optimism.
Non-Farm Employment Exceeds Expectations, Unemployment Rate Remains Stable
According to the latest data from the US Bureau of Labor Statistics (BLS), non-farm employment in April increased by 177,000, significantly higher than the market's expected 138,000. Although slightly lower than the revised 185,000 in March, it remains robust. This report effectively mitigated market concerns about a potential rapid deterioration of the US economy, thereby boosting investor risk appetite.
Looking at the details, the unemployment rate remained low at 4.2%, with average hourly wages increasing 0.2% monthly and 3.8% annually. These figures collectively paint a picture of a resilient labor market.
US-China Trade Tensions Ease
Beyond the positive economic data, signs of easing US-China trade relations also injected optimism into the market. The Chinese Ministry of Commerce stated yesterday that Beijing is evaluating the possibility of restarting trade negotiations with the US, emphasizing that the US needs to show sincerity, particularly in preparing to remove unilateral tariffs.
Simultaneously, The Wall Street Journal reported that China is considering taking action to address the US-raised fentanyl crisis, viewed as a potentially positive signal for restarting trade talks.
Four Major Indices Rise
Encouraged by these positive news, the four major US stock indices rose comprehensively on Friday:
- Dow Jones Industrial Average rose 564.47 points, up 1.39%, closing at 41,317.43 points.
- Nasdaq Composite rose 266.99 points, up 1.51%, closing at 17,977.73 points.
- S&P 500 Index rose 82.53 points, up 1.47%, closing at 5,686.67 points.
- Philadelphia Semiconductor Index was particularly outstanding, rising 149.39 points, up 3.52%, closing at 4,397.05 points.
Among these, all 11 sectors of the S&P 500 index turned red, with communication services stocks leading the gains at 2.31%, followed by financial stocks rising 2.15%, jointly becoming the main market drivers.
In individual stocks, most tech stocks performed strongly. However, Apple dropped 3.74% after reporting earnings due to anticipated tariff cost impacts, while Amazon slightly declined 0.12% due to lower-than-expected forecasts and slowing cloud business growth. Additionally, Taiwan stock ADRs generally rose, with TSMC ADR up 3.80%.
Bitcoin Approaches $98,000
As US stocks opened higher, Bitcoin also strengthened. According to Binance spot data, after the employment data was released, Bitcoin rose from $96,500, reaching a high of $97,895 at 10:45 PM. However, selling pressure subsequently emerged, and before this article's deadline, it had fallen back to $96,484, down 0.38% in the past 24 hours.
