US stocks surged to their longest winning streak in two decades, driven by optimism over trade talks between the US and China, which revealed a stronger-than-expected jobs market. The S&P 500 index rose 1.5% to 5,686, with the Dow Jones Industrial Average and Nasdaq also gaining over 1%. This is the ninth consecutive positive trading session for the S&P, its longest winning streak since November 2004.
The news comes as Beijing indicated a willingness to address US concerns over China’s role in fentanyl production, potentially paving the way for a trade deal with the White House. The S&P closed at its highest price since March 28, surpassing the April 2 low after President Trump announced country-by-country tariff rates.
Despite this rally, the stock market is still down 7% from its February record high and 5% since Trump’s second presidency began. However, many companies are benefiting from the recovery, with artificial intelligence players like Palantir, Arista Networks, and Vistra leading the gains. Meta, Microsoft, and Tesla also saw significant increases.
Notably, Apple’s stock tumbled 4%, citing a $900 million direct profit hit from tariffs. The news comes as several companies have lowered or suspended financial guidance due to tariff uncertainty.
Experts, including LPL Financial chief economist Jeffrey Roach, believe that if labor markets hold up and the Trump administration eases tariffs, the economy may avoid a deep recession.
Source: https://www.forbes.com/sites/dereksaul/2025/05/02/sp-500-notches-longest-winning-streak-since-2004-as-stocks-claw-back-from-liberation-day-crash