Wall Street and European stocks rallied and U.S. Treasury yields surged on Friday as investor risk appetite was strengthened by a strong employment report and signs China is open to tariff negotiations. All three major U.S. stock indexes advanced more than 1% on the session, with economically sensitive financials (.SPSY), opens new tab, transports (.DJT), opens new tab and microchips (.SOX), opens new tab outperforming the broader market. The Reuters Tariff Watch newsletter is your daily guide to the latest global trade and tariff news. Sign up here. All three indexes advanced on the week. Advertisement · Scroll to continue The S&P 500 posted its ninth consecutive session of gains, its longest winning streak in over two decades. The U.S. economy added more jobs than expected last month and wage inflation came in below consensus, according to the Labor Department, prompting a jump in benchmark U.S. Treasury yields. "There was really not anything not to like about the jobs data; it indicates that the economy is doing just fine," said Paul Nolte, senior wealth adviser and market strategist at Murphy & Sylvest in Elmhurst, Illinois. "There are still discussions about the impacts of tariffs, but so far at least, that data has not shown up in a lot of the numbers." Advertisement · Scroll to continue Nonfarm payrolls Nonfarm payrolls Beijing is evaluating Washington's offer to hold talks over U.S. President Donald Trump's crushing tariffs, China's Commerce Ministry said, signaling a potential de-escalation of the market-rattling trade war. "China and the U.S. are both taking slow but repeated steps toward negotiation and reconciliation," Jed Ellerbroek, portfolio manager at Argent Capital Management in St. Louis. "It seems the spiraling-out-of-control phase ended." "The market does not believe that the current tariff rates are going to persist for very long," Ellerbroek added. Lack of clarity regarding U.S.-China trade duties has contributed to a marked deterioration in U.S. businesses' long-term outlooks, the latest round of quarterly earnings results has shown. Apple (AAPL.O), opens new tab and Amazon.com (AMZN.O), opens new tab reported quarterly earnings late on Thursday with disappointing forecasts, including Apple's estimated $900 million in tariff costs. The reports took some wind from the sails of the so-called Magnificent Seven group of artificial intelligence-related megacap stocks, which had enjoyed a rebound this week. 00:09 Wall Street stocks buoyed by strong data, possible US-China talks
The video player is currently playing an ad. General Motors (GM.N), opens new tab warned of a $4 billion-$5 billion hit to earnings and American Airlines (AAL.O), opens new tab withdrew profit forecasts. The Dow Jones Industrial Average (.DJI), opens new tab rose 564.47 points, or 1.39%, to 41,317.43, the S&P 500 (.SPX), opens new tab rose 82.49 points, or 1.47%, to 5,686.63 and the Nasdaq Composite (.IXIC), opens new tab rose 266.99 points, or 1.51%, to 17,977.73. European shares surged, closing the book on a busy earnings week as revived hopes of Sino-U.S. trade negotiations and solid employment data stoked investor optimism. MSCI's gauge of stocks across the globe (.MIWD00000PUS), opens new tab rose 13.23 points, or 1.58%, to 848.38. The pan-European STOXX 600 (.STOXX), opens new tab index rose 1.67%, while Europe's broad FTSEurofirst 300 index (.FTEU3), opens new tab rose 36.55 points, or 1.75%. Emerging market stocks (.MSCIEF), opens new tab rose 23.83 points, or 2.14%, to 1,135.80. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS), opens new tab closed higher by 2.44%, to 595.08, while Japan's Nikkei (.N225), opens new tab rose 378.39 points, or 1.04%, to 36,830.69.
