Wall Street Rebounds Strongly Amid Tariff Tensions, Notches Longest Winning Streak Since 2004

Wall Street staged a striking comeback this week, erasing losses suffered after President Donald Trump’s latest round of global tariffs. The U.S. stock market rallied for a ninth consecutive day, marking its longest winning streak in over two decades—a run not seen since 2004.

On Friday, major indexes closed in the green: the S&P 500 and Nasdaq each surged 1.5%, while the Dow Jones Industrial Average climbed 1.4%, propelled by investor optimism following a strong April jobs report and signs of renewed U.S.–China trade dialogue.

Tech Sector Leads the Charge

The technology sector spearheaded Friday’s gains, with Microsoft and Nvidia jumping more than 2%. The performance comes amid a broader rebound across equities, signaling cautious optimism despite ongoing geopolitical and economic headwinds.

Wall Street’s confidence was buoyed by news from the U.S. Department of Labor, which reported that 177,000 jobs were added in April—a figure that exceeded analysts' expectations, even though it reflected a slight slowdown from March. The unemployment rate remained stable at 4.2%.

Jobs Data Tempers Recession Fears

Economists welcomed the report as a positive signal in an otherwise murky economic landscape. Just days earlier, the U.S. Commerce Department had confirmed a contraction in GDP—the country’s first in three years—intensifying fears of a possible recession.

But Friday’s data painted a more resilient picture.

“You cannot find any evidence of a nascent recession in these figures,” said Carl Weinberg, chief economist at High Frequency Economics, in a client research note.

Seema Shah, Chief Global Strategist at Principal Asset Management, echoed that sentiment:

“The economy will weaken in the coming months but, with this underlying momentum, the U.S. has a decent chance of averting recession if it can step back from the tariff brink in time.”

Hope for U.S.–China Trade Dialogue

Adding to market momentum was news from Beijing, which announced it is considering a U.S. proposal for renewed trade talks. This development was met with cautious optimism by investors, many of whom have been jittery over Trump’s expanding tariff regime.

Currently, China faces an effective import tax of 145%, the steepest among affected nations. Trump’s tariff framework—framed as “reciprocal” by the administration—has drawn backlash from U.S. industries, trade partners, and economists alike, as many fear long-term disruption to global supply chains and domestic price stability.

Analysts Urge Patience Amid Volatility

While the jobs report has calmed some nerves, experts warn that the true economic impact of Trump’s tariffs will take months to unfold.

“The outlook remains very uncertain,” said Olu Sonola, head of U.S. economic research at Fitch Ratings, in an interview with the BBC. “While the jobs data is strong, we’re still bracing for delayed ripple effects.”

Looking Ahead

Investors are keeping a close watch on upcoming trade negotiations and consumer confidence indicators to determine whether this market resurgence has staying power or is simply a momentary reprieve.

With tariff deadlines looming in early July, the next few weeks may prove pivotal—not just for the U.S. stock market but for the broader global economy.