Wall Street exploded as the major stocks indices closed higher for the ninth day in a row. At 14 weeks, this is the longest winning streak for US markets since 2004. The increases come on the heels of a jobs report that surprised pundits with an impressively strong showing. It also showed an unexpected dip in hiring from the prior month.
Although the unemployment rate held firm at 4.2%, an indication that the labor market still has so much resilience to give. The S&P 500 and Nasdaq Composite both gained 1.5%, and the Dow Jones Industrial Average added 1.4%. Such optimistic progress embodies Wall Street’s rebound from blows taken after president Donald Trump’s recently proposed worldwide tariffs.
Fitch Ratings chief US economic research Olu Sonola struck a cautionary note about the trajectory of improved economic conditions. “The outlook is still highly uncertain,” he said. For Seema Shah, chief global strategist at Principal Asset Management, there’s a silver lining even amidst the cloudy uncertainty. She recommends that investors find opportunities to be hopeful.
Beijing should take Washington up on its recent offer to hold high-level trade talks. This announcement has flooded the grapevine with rumors about a thawing of other trade tensions. Currently, the highest import taxes are paid by China with tariffs as high as 145%. Whether a deal is ultimately reached or not, the prospect of negotiations has fueled the increased optimism, especially among investors seeking stability in a volatile market.
Carl Weinberg, chief economist at High Frequency Economics, commented on the market’s performance, stating, “There is nothing to complain about here.” His remarks reflect a growing sentiment that perhaps the worst is over for the market. Nevertheless, worries over trade relations and the direction of hiring continue to cloud the optimism.