S&P 500 has reached longest profit series for 20 years thanks to Trump and China

S&P 500 has reached longest profit series for 20 years thanks to Trump and China

The US exchanges recorded an increase on Friday, with the S&P 500 reaching the longest winning streak since 2004. The reason for the positive developments was the signaled openness of China for trade talks and a better than expected labor market report. The Dow Jones Industrial Average rose by 564 points, which corresponds to an increase of 1.39 %. The broader S&P 500 increased by 1.47 %, while the technology -oriented Nasdaq Composite added 1.51 %. Both the DOW and the S&P 500 achieved their ninth successive daily profit.

strong labor market report as a catalyst

With the nine-day profit streak, the S&P 500 has achieved the first of its kind since November 2004. In the past two decades, a nine-day winning route has remained a rarity, despite many seven and eight-day sequences. This increase helped the S&P 500 to compensate for the losses since the announcement of Donald Trump's presidential level via "mutual" tariffs on April 2. The DOW has recorded its first nine -day winning route since December 2023 and is still about 2 % below the closing course of April 2.

positive influencing factors on the markets

The increase in the stock market was supported by data from the Ministry of Labor, which showed that the US economy created 177,000 new jobs in April and thus exceeded the expectations of around 135,000 jobs. Chris Zaccarelli, Chief Investment Officer from Nortlight Asset Management, expressed in an email: "The markets breathe open this morning when the labor market data failed better than expected. Even if the fears before a recession continues to be latent, the principle 'Buy could stop at background reset until the tariffs expire."

trade discussions and geopolitical developments

shares extended their profits on Friday according to a report by Wall Street Journal, who informed that China was thinking about discussing possible solutions for the concerns of the United States regarding its role in international fentanyl trade. A spokesman for the Chinese Ministry of Commerce said on Friday that China "is currently evaluating the United States' proposals for the beginning of trade talks", which represents a subtle change of sound that could open the door to negotiations. David Russell, global director of the market strategy for tradestation, commented: "The US employment remains strong despite the uncertainties in relation to tariffs."

uncertainty in economic policy

Despite the strong labor market data on Friday, which signaled a relatively stable labor market and dispelled some worries about the health of the economy, investors will continue to pay attention to trade negotiations and new data publications in the coming months in order to be able to better assess the effects of tariffs. David Doyle, head of economics at Macquarie, noticed in a message: "The labor market remains stable until mid -April, even if this period is probably ahead of the impending effects of uncertainty regarding trade policy."

Current trends and market developments

Although Wall Street is nervous about possible cracks in the economy shown by the Commerce data, a decline in employment growth in the private sector in April shows that caution is still required. The CNN-FUNKT-and-Gier-Index fell back into the area of "Angst" on Thursday after February 19th in the area of "Neutral" had increased. Analysts emphasize that "we are not yet in the safe zone, as it is unclear how the US trade strategy will change in the second half of 2025 compared to previous developments". Matt Stucky, Chief Portfolio Manager at Northwestern Mutual Wealth Management, emphasizes that the uncertainties of trade policy are currently the greatest focus of investors.

look at the central bank

President Trump expressed the desire to reduce the interest rates of the Federal Reserve on Friday, and asked the central bank directly: "No inflation, the Fed should lower its interest !!!" A strong labor market report can often be a signal that the Fed could think about an interest rate reduction. According to the CME fedwatch tool, the dealers reduced their expectations for a interest in the interest in June on Friday. The expectations are now 36.6 % compared to 55 % the day before. While inflation goes back, it still remains above the target value of 2 % of the fed.

technology market in the upswing

The rally in the tech industry also found support from strong quarterly figures for companies such as Meta and Microsoft. Analysts reported a strong focus on artificial intelligence that strengthens the trust of investors. Meta shares rose by 4.3 % on Friday, while Microsoft increased by 2.3 %. At the same time, Apple experienced somewhat less positive reactions to their Q2 numbers, since the company had to report a decrease of $ 900 million due to tariffs. Amazon, on the other hand, published “healthy” results for the first quarter, even if the forecasts were mixed.

If the S&P 500 tends to climb again on Monday, this would mark the first 10-day winning streak since the 1990s. Analysts are excited to see how the market conditions will develop in the near future.