Wall Street’s main indexes have advanced as signs of a de-escalation in the trade tensions with China and a strong jobs report calms concerns about the economic toll of tariffs.
China said on Friday it was “evaluating” an offer from the United States to hold talks over US President Donald Trump’s 145 per cent tariffs on China.
The tit-for-tat tariffs between the world’s two largest economies have kept investors on edge, with both sides unwilling to be seen backing down in a trade war that has roiled global markets.
Further aiding the mood on Friday, data showed non-farm payrolls increased more than expected in April, with the unemployment rate steady at 4.2 per cent.
“This is good employment data which suggests that the economy remains strong,” said Melissa Brown, managing director of investment decision research at Simcorp.
“We could see these numbers go down as the impact of tariffs really starts to make its way through the economy, but it’s not there yet.”
In early trading on Friday, the Dow Jones Industrial Average rose 450.30 points, or 1.10 per cent, to 41,203.26, the S&P 500 gained 59.98 points, or 1.07 per cent, to 5,664.12 and the Nasdaq Composite gained 162.22 points, or 0.92 per cent, to 17,873.64.
All indexes were set for weekly gains.
Most chip stocks jumped, sending the broader index up 3.0 per cent.
Megacaps also gained, barring Apple and Amazon.com
Limiting gains on the information technology sector, Apple slipped 4.6 per cent after the iPhone maker trimmed its share buyback program by $US10 billion ($A16 billion) and CEO Tim Cook told analysts that tariffs could add about $US900 million in costs this quarter.
“Apple claimed the sort of earnings beat that was never likely to win much favour … at a time when its products business is fraught with uncertainty, it’s not great that growth on the services side has disappointed,” said AJ Bell investment director Russ Mould.
Amazon.com was down marginally after it forecast second-quarter operating income below estimates.
Trump’s reversal of some tariffs has helped US stock indexes recover from recent losses.
The tech-heavy Nasdaq was trading at levels last seen before April 2, dubbed “Liberation Day,” when the president unveiled massive global tariffs.
Despite signs of reprieve on the trade front, the erratic changes in US tariff policies have forced some companies to warn of business effects or pull earnings forecasts amid worries of higher costs and a hit to economic growth.
Oil giant Chevron was up marginally while Exxon Mobil slipped after its results.
Block slumped more than 22 per cent after cutting its profit forecast for 2025 and missing estimates for quarterly earnings.
Airbnb dipped 2.2 per cent after the holiday rental platform forecast second-quarter revenue largely below Wall Street estimates and signalled softening demand in the US
Videogame maker Take-Two Interactive fell 7.3 per cent after it delayed the release of Grand Theft Auto VI to May 2026.
Advancing issues outnumbered decliners by a 5.73-to-1 ratio on the NYSE and by a 3.78-to-1 ratio on the Nasdaq.
The S&P 500 posted 7 new 52-week highs and 3 new lows while the Nasdaq Composite recorded 28 new highs and 15 new lows.
https://thewest.com.au/business/markets/wall-st-climbs-on-tariff-optimism-strong-us-jobs-data-c-18564155
