US stocks climbed Friday, rebounding fully from the losses triggered by Trump’s tariff announcement last month. Solid job growth and signs of China softening its stance on trade talks contributed to a wave of investor optimism.
Key Facts:
- The S&P 500 rose 1.2% early Friday, marking its ninth straight gain and recovering losses since Trump’s tariff move on April 2.
- The US added 177,000 jobs in April, beating economist expectations of 138,000.
- China is assessing the possibility of renewed trade talks and has exempted about $40 billion in US goods from tariffs.
- The Buffett Indicator shows equities remain relatively cheap, suggesting more room for gains.
- Investors expect a more market-friendly stance from the Trump administration in the months ahead.
The Rest of The Story:
Stocks roared back Friday morning, led by a 1.2% jump in the S\&P 500, matching levels last seen before President Trump announced broad tariffs last month.
The Nasdaq 100 and Dow Jones Industrial Average also rose 1.2%.
The bounce comes after a string of positive developments, including stronger-than-expected jobs data and a signal from China that it may return to trade talks.
The US economy added 177,000 jobs in April, significantly outpacing expectations.
The unemployment rate held steady at 4.2%, reinforcing confidence in the job market.
Investors were also encouraged by news that China had started exempting certain US products from tariffs—131 items in total—raising hopes for de-escalation and negotiations.
In the background, the Buffett Indicator—which compares total US market value to GDP—remains low, even after recent gains.
That metric supports the view that stocks are still attractively priced, offering further fuel for the rally.
Democrats are big mad that President Trump is celebrating his economic success. Prices are going down with necessities like eggs and gas. The tariffs are working to get countries to negotiate fair trade. More jobs are being added than expected. Stock market is soaring.
WINNING! pic.twitter.com/146f2iMzvU
— Paul A. Szypula 🇺🇸 (@Bubblebathgirl) May 2, 2025
Commentary:
Yet again, the doom-and-gloom predictions from major media outlets have fallen flat.
After warning of an imminent stock market collapse due to tariffs, the market has instead surged.
Investors seem to be more confident than ever in the economy’s resilience—and perhaps more importantly, in the Trump administration’s economic direction.
Rather than panicking, market participants have shown faith that policy uncertainty can be weathered if there’s a path toward clarity.
That seems to be happening now, as China hints at negotiations and exempts billions in US goods from retaliatory tariffs.
The job numbers tell a similar story.
Despite fears that tariffs would crush hiring, April’s report showed robust job growth and stable unemployment.
That kind of labor strength makes the case against a market downturn and suggests the economy has more muscle than critics admit.
Add to that the optimism sparked by value indicators like the Buffett metric, and it’s no wonder markets are moving higher.
Smart money sees opportunity, not risk.
The idea that Trump’s policies would trigger lasting economic damage simply hasn’t materialized.
While some strategists suggest shifting investments overseas due to lingering trade questions, the American market remains the primary driver of global returns.
Investors betting against the US economy are, once again, finding themselves on the wrong side of history.
The Bottom Line:
The market’s recovery following Trump’s tariffs shows that investor confidence remains strong.
With solid job growth, early trade concessions from China, and stocks still viewed as undervalued, the economic outlook appears far more positive than media forecasts suggested.
The narrative of a collapsing economy has given way to one of resilience and renewed optimism.
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