U.S. Stock Market Summary for Friday, May 2, 2025

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Major Indices

• S&P 500: +1.47% → 5,686.67
• Dow Jones Industrial Average: +1.39% → 41,317.43
• Nasdaq 100: +1.60% → 20,102.61
• Russell 2000: +2.27% → 2,020.74

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Market Overview
U.S. equities ended Friday sharply higher, extending the S&P 500’s winning streak to nine consecutive sessions—its longest since 2004. Market sentiment improved as April’s stronger-than-expected employment data reassured investors about the labor market's durability. Signs of renewed diplomatic engagement between the U.S. and China also lifted investor confidence, partially offsetting earlier concerns over tariff policy.

The yield on U.S. Treasuries moved higher as traders scaled back expectations for imminent rate cuts by the Federal Reserve.

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Sector Highlights
Technology stocks led the advance, with the sector rising 1.5% on average. Global trade-sensitive sectors like automotive components and consumer goods also performed well, buoyed by China’s openness to resume trade discussions.
In contrast, the health care sector lagged behind, with the XLV ETF falling 2.7%.

Among key movers, Apple dropped 3.74% after reporting weaker-than-expected sales in China, despite otherwise solid quarterly earnings. Take-Two Interactive declined after announcing a delay in the release of GTA VI to next year.

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Economic Snapshot

• Nonfarm Payrolls (April): +177,000 (vs. 130,000 expected)
• Unemployment Rate: 4.2% (unchanged)
• Average Hourly Earnings: +3.8% YoY
• Q1 2025 GDP: -0.3% annualized

The April jobs report showed solid hiring, alleviating fears of a labor market slowdown. However, the contraction in first-quarter GDP—driven by increased imports and reduced government expenditures—raises questions about broader economic momentum.

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Expert Commentary
Tally Ledger (Wealth Consulting Group) noted that "the market welcomed the jobs report, but the slowing pace of job gains has not been widely acknowledged."
Kevin Tozier (Camignac) suggested, "we may have passed the peak of policy uncertainty," highlighting improving trade dynamics and relatively strong earnings.
Chris Zaccarelli (NorthLight) added, "better-than-expected jobs data eased investor concerns."
However, Lawrence Creatura (PRSPCTV Capital) cautioned, "it's too early to gauge the full impact of tariff news on U.S. businesses."

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Government & Political Notes
President Trump revealed his 2026 federal budget proposal, which includes deep cuts to non-defense discretionary spending. The plan is expected to face resistance in Congress, particularly from moderate Republicans.

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Conclusion
U.S. stocks closed the week with robust gains, bolstered by encouraging employment figures and improving trade outlooks. Despite a contraction in GDP, markets found support in a stable labor market and easing geopolitical headwinds. Looking ahead, investors will turn their attention to inflation data and upcoming Federal Reserve commentary for clues on policy direction.