A strong US jobs report ignited a powerful rally on Friday, lifting major indexes and restoring investor confidence after weeks of tariff-driven anxiety. The S&P 500 surged for a ninth consecutive session, its longest winning streak in more than two decades, while the Dow jumped over 560 points to finish near its highs. Signs of a resilient labour market and renewed hopes for US-China trade talks fuelled broad gains across sectors. Despite earnings disappointments from some tech heavyweights, the market’s recovery momentum remained intact. All three benchmarks posted a second straight week of gains, reclaiming ground lost earlier in April.

Key Takeaways:

  • Dow Jumps Over 560 Points in Broad Rally: The Dow Jones Industrial Average surged 564.47 points, or 1.39%, to close at 41,317.43. The blue-chip index was lifted by easing recession concerns and renewed trade optimism, marking its second consecutive weekly gain with a 3% advance.
  • S&P 500 Marks Longest Winning Streak Since 2004: The S&P 500 climbed 1.47% to 5,686.67, notching its ninth straight day of gains and recovering all losses incurred since early April. The index is now up 2.9% for the week and has staged an impressive rebound as solid earnings and macro resilience continue to fuel bullish sentiment.
  • Nasdaq Erases Tariff Losses, gains 1.51%: The Nasdaq Composite added 1.51% to finish at 17,977.73, also booking its second weekly gain in a row. Tech shares recovered recent losses driven by tariff concerns, with chipmakers and AI-linked names providing a boost despite mixed earnings from Apple and Amazon.
  • Europe Rallies on US Jobs Data and Trade Hopes: European equities ended the week on a strong note, led by industrial and tech sectors. Germany’s DAX jumped 2.62%, France’s CAC 40 climbed 2.33%, and Italy’s FTSE MIB gained 1.92%. The pan-European Stoxx 600 rose 1.7%, capping a week of risk-on momentum. London’s FTSE 100 rose 1.2% on Friday, securing its longest-ever run of daily gains. For the week, the FTSE 100 added 2.15%, reaching 8,596.30. A steady euro zone inflation reading at 2.2% and stronger-than-expected Q1 GDP growth of 0.4% added to the bullish tone.
  • Asia Tracks Wall Street Gains as China Signals Trade Talks: Asia-Pacific markets rallied broadly on Friday amid signs that China may return to trade negotiations with the US Hong Kong’s Hang Seng Index rose 1.74%, while the Hang Seng Tech index jumped over 3%. Japan’s Nikkei advanced 1.04%, and the broader Topix rose 0.31%. Australia’s ASX 200 gained 1.13%, reaching its highest level since late February. India’s Nifty 50 edged up 0.21%, and South Korea’s Kospi rose 0.12%. The upbeat tone was fuelled by optimism over easing trade tensions and AI-driven momentum. Chinese markets were closed for the Labour Day holiday.
  • Oil Logs Biggest Weekly Drop Since March: Oil prices fell on Friday, with WTI settling at $58.29 and Brent at $61.29, both down more than 1%. For the week, crude posted its steepest loss in over a month as traders grew cautious ahead of the rescheduled OPEC+ meeting. The alliance is weighing whether to implement a larger supply hike in June. Concerns about demand and macro policy uncertainty added pressure to crude’s recent slide.
  • Treasury Yields Surge After Strong Jobs Data: The 10-year Treasury yield jumped over 7 basis points to 4.308% following Friday’s nonfarm payrolls report, while the 2-year yield surged more than 12 basis points to 3.828%. The labour market’s resilience eased fears of economic fallout from tariffs and lifted expectations ahead of next week’s Fed meeting.
  • Jobs Report Beats Expectations, Calms Recession Fears: Nonfarm payrolls rose by 177,000 in April, topping the Dow Jones estimate of 133,000 but down from March’s 228,000. The unemployment rate held steady at 4.2%. A broader measure of unemployment ticked down to 7.8%, while labour force participation edged up to 62.6%. The data helped shift sentiment after recent fears of a downturn.

FX Today:

  • EUR/USD Holds Above 1.1300, Maintains Bullish Structure: EUR/USD rose 0.17% to close at 1.1306, extending its breakout run that began in late March. The pair has now stabilised above the key 1.1250–1.1300 support zone following a push through long-term resistance. The rising 50-day SMA at 1.0977 underpins the uptrend, along with the 100-day and 200-day SMAs at 1.0683 and 1.0780, respectively. Despite some consolidation below 1.1500, momentum and structure remain bullish, with upside targets at 1.1450 and 1.1600. Downside risk remains limited as long as the pair holds above the 50-day average and avoids a break below 1.1250.
  • GBP/USD Consolidates After Breakout, Remains Above Key Averages: GBP/USD finished the session flat at 1.3279, holding firm after April’s breakout pushed the pair through all major moving averages. The 50-day SMA at 1.3006 now acts as dynamic support, while the recent high near 1.3450 caps the short-term range. Both the 100-day and 200-day SMAs have flattened, with signs they may soon turn higher. Technicals suggest the current pause is a healthy consolidation, not a reversal. If the pair reclaims 1.3400 and pushes higher, a test of 1.3600 is likely. A drop below 1.3200 would signal loss of short-term momentum but the broader bias remains bullish.
  • USD/JPY Faces Resistance, Struggles to Sustain Recovery: USD/JPY slipped 0.24% to close at 144.97, retreating after failing to hold above the 50-day SMA at 146.85. The pair has bounced from April’s low near 140.85 but remains stuck below a dense resistance band between 147.00 and 151.00. The 100-day and 200-day SMAs at 150.94 and 149.78 continue to slope downward, suggesting bearish overtones. The technical picture remains neutral to bearish, with bulls needing a breakout above 151.50 to shift sentiment. On the downside, a move below 143.00 would expose deeper support near 140.85 and possibly 139.00.
  • AUD/USD Eyes Breakout at 200-Day SMA: AUD/USD jumped 1.03% to close at 0.6448, hitting its highest level since February and challenging the 200-day SMA at 0.6461. The pair has rallied sharply from its April low near 0.5900, now trading above both the 50-day and 100-day SMAs. This alignment favours a continued bullish move if resistance at 0.6460 is breached. A breakout could target 0.6600 or higher, while failure to clear the 200-day average may lead to a pullback toward 0.6350. Overall momentum remains positive, but the pair sits at a key inflection point for confirming a medium-term trend reversal.
  • Gold Holds Key Support After Pullback from Record Highs: Gold (XAU/USD) ended Friday at $3,233.58, down 0.16% after retreating from April’s parabolic rally. The metal remains well above the rising 50-day SMA at $3,086.42, with long-term momentum intact. Key support lies in the $3,100–$3,200 zone, where dip buyers are expected to step in. Resistance remains at $3,350 and the all-time high near $3,500. The broader uptrend remains unbroken, supported by rising 100-day and 200-day SMAs and ongoing macro uncertainty. Unless price breaks below $3,086, gold remains in a consolidation phase with bullish potential.

Market Movers:

  • Duolingo Soars on Strong Forecast: Shares of Duolingo surged over 21% after the language learning platform issued upbeat guidance. The company expects Q2 revenue between $239 million and $242 million, above the $234 million consensus. 
  • Apple Drops on Services Revenue Miss, Tariff Warning: Apple fell 3.7% after reporting Q2 services revenue of $26.65 billion, just shy of the $26.70 billion estimate. While overall earnings and revenue beat expectations, the company flagged $900 million in added costs next quarter due to tariffs, weighing on sentiment.
  • Amazon Edges Lower on Cautious Guidance: Amazon shares slipped 0.1% despite posting better-than-expected Q1 results. The company issued soft guidance, forecasting operating income between $13 billion and $17.5 billion—below the $17.64 billion consensus. Management cited tariff and trade uncertainties as headwinds.
  • Nvidia Climbs on China Chip Strategy: Nvidia gained 2.5% after a report from The Information revealed the company is designing custom chips for sale in China. The move comes in response to US export restrictions, aiming to preserve market share while complying with regulations.
  • Take-Two Slides on Grand Theft Auto Delay: Shares of Take-Two Interactive fell 6.7% after the company announced a delay for the next Grand Theft Auto title. The game, initially slated for fall 2025, will now be released on May 26, 2026, disappointing investors.
  • Block Plunges on Revenue Miss and Weak Guidance: Block shares tumbled 20.4% after the payments company missed Q1 revenue expectations and warned of macro-driven uncertainty. The firm reported $5.77 billion in revenue, well below the $6.20 billion forecast, and issued a soft outlook.
  • Dexcom Pops on Earnings Beat and Buyback: Dexcom jumped 16.2% after reporting Q1 revenue of $1.04 billion, topping estimates. The glucose monitoring firm also announced a $750 million share repurchase program, boosting investor confidence.

Markets wrapped up the week on a high note, boosted by robust US jobs data and renewed optimism around US-China trade relations. The S&P 500’s historic nine-day winning streak reflects growing investor confidence, even as pockets of uncertainty remain around tariffs and central bank policy. While earnings results were mixed, strong guidance from several names helped support sentiment. Treasury yields jumped as recession fears eased, and oil declined ahead of a pivotal OPEC+ meeting. With the Federal Reserve’s rate decision looming next week, attention now shifts to policy signals and inflation data that could shape the next phase of the market’s rally.