U.S. stocks rally across the board: Non-farm employment data beats expectations and easing tensions between the U.S. and China provide a boost, as the Dow Jones index surges more than 450 points.

On May 2, 2025, the Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite, the three major U.S. stock indices, rose, with the Dow climbing 488.04 points and the S&P 500 achieving its longest streak of consecutive gains in 20 years. The rally was due to better-than-expected April non-farm payroll data and indications of easing tensions between the U.S. and China over trade. Technology stocks and the semiconductor sector led the gains, with Taiwan Semiconductor Manufacturing Company (TSMC) American Depositary Receipts (ADR) rising 3.74%. Investor confidence rebounded, and riskier assets became more attractive.

Non-Farm Employment Data Exceeds Expectations, Labor Market Shows Resilience

The U.S. Bureau of Labor Statistics (BLS) released the April non-farm employment report on the same day, showing an increase of 177,000 jobs in April, significantly higher than the market expectation of 130,000. Although slightly lower than the revised 185,000 in March, it still indicates a robust performance in the job market. The unemployment rate remained at 4.2%, consistent with previous values and expectations.

The report noted that the transportation and warehousing industry added 29,000 jobs in April, indicating that companies are speeding up their hiring in anticipation of potential tariff impacts to meet supply chain demands. Additionally, the average weekly hours remained at 34.3 hours, with an average hourly wage annual growth rate of 3.8% and a monthly growth rate of 0.2%, slightly below expectations, but overall wage growth remains stable.

Easing Signals in U.S.-China Trade Situation

Meanwhile, China's Ministry of Commerce announced on Friday that it is evaluating the U.S. proposal for tariff negotiations. This is the first time Beijing has publicly admitted to considering dialogue with the U.S. on trade issues. The statement noted that China has observed multiple statements from senior U.S. officials willing to negotiate and has proactively conveyed messages through various channels. Although China emphasized that negotiations must be based on "correcting wrong practices," this move is still seen as a sign of a potential breakthrough in bilateral relations.

According to reports, after U.S. President Trump announced a 145% tariff on Chinese imports last month, the market experienced significant volatility. However, Trump later announced a 90-day delay on the new tariffs and stated that trade negotiations are "progressing well." This series of actions has brought a certain level of stability to market expectations.

Impressive Index Performance, S&P 500 Sets Longest Winning Streak in 20 Years

Fueled by the positive news above, major U.S. stock indices rose across the board. According to data as of 9 PM Taipei time on May 2:

The Dow Jones Industrial Average rose 488.04 points, or 1.20%, to 41,241.00 points
The S&P 500 Index climbed for nine consecutive trading days, rising 63.38 points, or 1.13%, to 5,667.52 points
The Nasdaq Composite Index rose 174.82 points, or 0.99%, to 17,885.56 points
The Philadelphia Semiconductor Index rose 124.50 points, or 2.93%, to 4,372.16 points

The S&P 500 Index has climbed for nine consecutive trading days, marking the longest winning streak since 2004. Technology and communication services stocks performed particularly well, rising 2.2% and 1.6%, respectively.

Technology and Semiconductor Stocks Lead Gains, TSMC's ADR Surges

The technology sector played a key role in this round of gains. TSMC's ADR rose 3.74%, closing at $179.18, with the Philadelphia Semiconductor Index also rising. Microsoft's and Meta's recently released earnings reports exceeded expectations, further boosting market confidence in AI and cloud computing.

However, some tech giants still face challenges. Apple's stock fell 4.7% in early trading to $203.29, despite second-quarter earnings per share (EPS) of $1.65, slightly above market expectations. The company warned that if current tariff policies continue, it will lead to an increase in costs of about $900 million this quarter. Amazon's stock also fell slightly by 0.67% to $188.93, despite revenue slightly exceeding expectations, as the market expressed concern over the slowdown in its AWS business growth.

Bond and Forex Markets React, Dollar Index Weakens

Amid rising risk sentiment, the yield on the U.S. 10-year Treasury note rose to 4.301%, reflecting investors' optimism about economic prospects. The dollar index fell to 98.62, indicating a shift of funds into riskier assets.

In the commodity market, gold prices rose 1.15% to $3,259.30 per ounce; oil prices fell slightly, with New York light crude at $58.95 per barrel and Brent crude at $61.86 per barrel.

U.S. stocks rally across the board: Non-farm employment data beats expectations and easing tensions between the U.S. and China provide a boost, as the Dow Jones index surges more than 450 points.

Key Updates

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