U.S. stock futures were trading firmly higher on Friday, as a stronger-than-expected April jobs report helped ease recession concerns and reignited investor optimism.
US stocks jump after jobs report
Futures tied to the Dow Jones Industrial Average, S&P 500, and Nasdaq 100 were all up around 1%, positioning the S&P 500 and Dow for a ninth consecutive session of gains—marking their longest winning streaks since late 2021.
The Labor Department reported that the U.S. added 177,000 jobs in April, surpassing forecasts of 130,000. While the unemployment rate held steady at 4.2%, wage growth remained relatively stable, indicating a labor market that is cooling gradually without showing signs of sharp deterioration. This reinforced investor confidence that the Federal Reserve may have room to cut interest rates later this year without triggering fears of an overheating economy.
Tariffs news impact
Adding to the bullish sentiment was news that China is open to restarting trade negotiations with the U.S., signaling a possible thaw in strained relations. Beijing’s willingness to engage, contingent on the removal of unilateral tariffs, gave investors hope for a de-escalation of trade tensions that have weighed heavily on global growth prospects.
Gains were broad-based across most sectors, with cyclical and tech stocks among the top performers. However, some high-profile names bucked the trend: Apple futures slipped 3% after the company warned that newly imposed tariffs could dent earnings this year. Amazon shares also fell 2% in pre-market trading following weaker-than-expected forward guidance, raising concerns about consumer demand and margin pressures.
Overall, the combination of solid job growth, stable wage inflation, and a potential breakthrough in U.S.-China trade relations supported a risk-on mood heading into the weekend.
