All four major U.S. stock indices rose across the board on May 1: The S&P 500 achieved its longest streak of consecutive gains since 2004, boosted by employment data and trade talks.

On May 1, 2025, the four major U.S. stock indices rose, with the S&P 500 index rising for the ninth straight trading day, marking its longest winning streak since 2004. The rally was fueled by April's non-farm employment data beating expectations and indications of renewed trade talks between the U.S. and China regarding the fentanyl issue. Non-farm payrolls increased by 177,000, while the unemployment rate held steady at 4.2%. Expectations of easing U.S.-China trade tensions bolstered market confidence, leading to a rise in the stock market.

S&P 500 Climbs for Nine Straight Days, Longest Streak in Nearly 20 Years

On May 1, all four major U.S. stock indices closed higher. The S&P 500 index rose 82.53 points, or 1.47%, to close at 5,686.67 points, marking its highest close since March 27 and its ninth straight day of gains, the longest streak since 2004. The Dow Jones Industrial Average increased by 564.47 points, or 1.39%, to close at 41,317.43 points, the highest since April 2. The Nasdaq Composite Index rose 266.99 points, or 1.51%, to close at 17,977.73 points, the highest since March 25. The Philadelphia Semiconductor Index also surged 3.52%, closing at 4,397.05 points.

This rally not only recouped the losses from early April when President Trump announced the "reciprocal tariff" policy but also reflects the market's optimism about economic fundamentals and international trade prospects.

April Sees Non-Farm Employment Rise by 177,000, Unemployment Rate Steady at 4.2%

Data released by the U.S. Department of Labor on May 1 showed that April 2025 non-farm employment, after seasonal adjustment, increased by 177,000, slightly below the revised 185,000 in March but significantly better than the market expectation of 133,000. The unemployment rate remained steady at 4.2%, consistent with March and in line with market expectations.

Job growth mainly came from industries such as healthcare, transportation and warehousing, and financial activities. Federal government employment decreased by 9,000, continuing a downward trend for the year. The labor force participation rate rose to 62.6%, the highest since January, indicating more people are returning to the workforce.

Additionally, average hourly earnings increased by 0.2% month-over-month and 3.8% year-over-year, slightly below market expectations of 0.3% and 3.9%. Despite the moderate wage growth, the overall job market still shows a robust expansion trend.

US-China Signal Talks on Fentanyl Issue

In addition to economic data, market sentiment was also boosted by the potential easing of US-China trade relations. According to The Wall Street Journal, China's Minister of Public Security Wang Xiaohong is evaluating the US's specific requests regarding the inflow of fentanyl precursors and is considering sending senior officials to the US or meeting with US officials in a third country. This move is seen as a positive response from China to restart trade negotiations.

China's Ministry of Commerce also stated on May 1 that it is evaluating the US's negotiation proposals and emphasized the hope that the US will show "sincerity." Previously, President Trump imposed tariffs of up to 145% on Chinese goods, citing China's failure to effectively curb the inflow of fentanyl precursor chemicals. Now, with both sides expressing willingness to dialogue, the market sees this as a sign of potentially easing trade tensions.

Market Reaction and Stock Performance

Driven by the positive news, overall market sentiment turned optimistic. The ratio of advancing to declining stocks on the New York Stock Exchange was 3.81:1, indicating that most stocks rose. In the S&P 500 index, 12 stocks hit 52-week highs, while the Nasdaq saw 51 stocks reach new highs.

Despite the market's upward trend, some stocks were hit by specific factors. Apple's stock price fell 3.74% to close at $205.35, mainly due to the company's announcement of a $10 billion cut to its stock buyback plan and a warning that tariffs could increase costs by about $900 million this quarter. In contrast, Meta and Nvidia rose by 4.34% and 2.59%, respectively, while TSMC's ADR surged 3.8%.

All four major U.S. stock indices rose across the board on May 1: The S&P 500 achieved its longest streak of consecutive gains since 2004, boosted by employment data and trade talks.

Key Updates

U.S. stocks fell on Monday: OPEC+ increased production, causing oil prices to plummet, with energy stocks taking the biggest hit, as Trump's trade policy and the Federal Reserve meeting drew attention.

On May 5, 2025, the U.S. stock market experienced a pullback as the Dow Jones Industrial Average and S&P 500 indices declined due to Trump's tariff policy.

Michael Wilson, Chief Strategist at Morgan Stanley: U.S. stocks show strong resilience, recommends investing in high-quality growth stocks and large-cap companies.

U.S. stock futures are down across the board: Dow is down more than 270 points, indicating market caution.

European stock markets rebound strongly: Easing of the US-China trade war boosts the market, UK stocks achieve a 15-day winning streak, Airbus's performance boosts its stock price.