The S&P 500 index is on track for its first nine-day winning streak since November 2004. That’s in addition to it having jumped 1.6% on Friday, pushing it up even further. If the index finishes up on Monday, it will become the first U.S. Should it end, this will be the first time since 1990 that it has gone on a 10-day consecutive winning streak. The rally is based on positive signs coming out of China expressing their desire to join the US in starting trade negotiations. Further stoking investor optimism was a stronger-than-expected jobs report on Friday.
The recent performance of the S&P 500 comes as President Donald Trump has softened his rhetoric regarding the U.S.-China trade war. On April 2, when Trump first announced these “reciprocal” tariffs, markets began to react negatively, sending the index tumbling down. After Friday’s gains, the S&P 500 is positioned to bounce back from recent declines. Overall market sentiment is significantly changing as well, driven by optimism on possible trade deals and through de-escalation of tensions.
Strong Earnings and Positive Economic Indicators
The S&P 500 made it four straight weeks of gains this week. With large-cap tech titans such as Meta and Microsoft delivering strong earnings reports, the market regained investor confidence. Analysts at Barclays noted, “There are plenty of things to worry about in the world, but Meta’s resilience is not one of them,” highlighting confidence in the tech sector’s performance.
Investor sentiment was very positive as well following the automatic humdinger of a jobs report that blew past lofty expectations. Chris Zaccarelli remarked, “Markets breathed a sigh of relief this morning as the jobs data came in better than expected,” underscoring the importance of economic indicators in influencing market trends. This incredibly positive employment data should further cement confidence that the U.S. economy is indeed strong, despite the ongoing cloud of tariff/Trade War uncertainty that persists.
David Russell added, “US employment remains strong despite tariff uncertainty,” emphasizing that job growth remains a key pillar for market confidence. Such observations would be consistent with a resilient labor market that can help weather any further turbulence in economic activity.
Trade Talks and Market Reactions
Meanwhile the S&P 500 continues to climb. At the same time, investors continue to watch closely for more assurance — or warning signs — of progress in trade talks between the U.S. and China. Howard Silverblatt, senior index analyst at S&P Dow Jones Indices, noted that market participants are paying very close attention to these dynamics. They’re on the lookout for anything that suggests a moody policy uncertainty.
Zaccarelli noted concerns about the future direction of U.S. trade policy, stating, “We aren’t out of the woods yet, because it’s unclear how much different the US trade approach will be in the second half of 2025 versus what we’ve seen year to date.” This type of caution highlights the mixed signal environment that investors increasingly find themselves in as they seek to pursue more long-term investment strategies.
Global markets followed the positive sentiment in the U.S. Japan’s Nikkei 225 and Hong Kong’s Hang Seng index each posted eye-popping increases. On Friday, Stoxx 600, Europe’s benchmark climbed higher. At the same time, Germany’s DAX index picked up steam, foreshadowing a coordinated move higher in nearly every major global index.
Potential for Record-Breaking Streak
If the S&P 500 finishes up on Monday, it will post an extremely rare 10-day winning streak. If achieved, this feat would be a historic moment in its post-IPO trading cycle. This is the first time this milestone has been reached since 1990. Market analysts and investors alike are monitoring this breakthrough potential milestone so closely.
The S&P 500 has set long winning streak records of seven and eight days respectively over that time span. It has had a tough time getting beyond the nine-day ceiling. Indeed, FactSet data confirms this trend, highlighting precisely how significant and unique such lengthy stretches of growth seldom have been.
With changing market dynamics and the potential for increased volatility, analysts are keenly aware of the trends that affect the relationship between geopolitical/economic factors and market sentiment. Gina Bolvin summarized the current sentiment succinctly: “This report buys the Fed more time to focus on the inflation mandate,” indicating a delicate balance between economic growth and inflation control.