Overview:
On Friday, May 2, Wall Street stocks advanced, marking the second consecutive week of gains, supported by strong economic data and potential easing of trade tensions between the U.S. and China. The U.S. economy added 177,000 jobs in April, exceeding expectations, and the unemployment rate remained steady at 4.2%. This data helped alleviate concerns about an economic slowdown following a contraction in the U.S. GDP for the first time in three years, primarily due to a surge in imports caused by tariffs.
Investors also reacted positively to news that Beijing was evaluating an offer from Washington to hold talks about President Donald Trump’s 145% tariffs on Chinese imports, potentially easing some trade tensions.
Fear & Greed Index:
Optimistic – Strong job growth data and positive trade developments are lifting market sentiment, although trade concerns continue to linger.
Key Indices (Closed Prices):
- Dow Jones Industrial Average: +1.39% at 41,317.43
- S&P 500: +1.47% at 5,686.68
- Nasdaq Composite: +1.51% at 17,977.73
Sector Performance:
- Winners:
- Technology: Tech stocks performed well, with Meta Platforms rising 4.3% and Nvidia gaining 2.6%.
- Energy: Chevron rose 1.6% and ExxonMobil gained 0.4% after reporting strong quarterly results.
- Losers:
- Consumer Discretionary: Apple fell nearly 4% due to a reduction in its share buyback program and rising costs from tariffs.
- Healthcare: Block slumped 20% after cutting its profit forecast for 2025 and missing earnings estimates.
Key Movers:
- Apple (AAPL): Fell 4% after trimming its buyback program by $10 billion and forecasting an additional $900 million in tariff-related costs.
- Meta Platforms (META): Rose 4.3%, driven by positive market reactions to strong performance.
- Nvidia (NVDA): Gained 2.6%, reflecting continued strength in AI-driven products and services.
- Chevron (CVX): Rose 1.6% following better-than-expected quarterly results.
- Block (XYZ): Fell 20% after cutting its 2025 profit forecast.
- Take-Two Interactive (TTWO): Dropped nearly 7% after delaying the release of “Grand Theft Auto VI” to May 2026.
Economic Data:
- Job Growth: U.S. economy added 177,000 jobs in April, surpassing expectations, with the unemployment rate holding steady at 4.2%.
- GDP Contraction: U.S. GDP contracted for the first time in three years, primarily due to a surge in imports linked to tariffs.
- Trade Talks: Potential easing of trade tensions between the U.S. and China as Beijing evaluates Washington’s offer for tariff talks.
- Trade Tensions: Ongoing concerns over the U.S.-China trade war continue to affect market sentiment, though recent discussions about trade talks have provided optimism.
Outlook:
Wall Street is buoyed by strong economic data and the potential for easing trade tensions between the U.S. and China. However, concerns about tariffs and global trade remain in the background. As earnings season continues, markets will likely remain sensitive to both corporate performance and trade policy developments. The positive jobs report has reinforced confidence in the resilience of the U.S. economy, despite the challenges posed by trade disputes.
