Stock Market Today: Indexes Rise as US-China Trade Tensions Ease and Jobs Report Looms

Market Indexes Climb on Potential US-China Trade Negotiations

The stock market is showing positive momentum today, Friday, May 2, 2025, as major indexes continue their upward trend amid signs of easing trade tensions between the United States and China. As of early morning trading, futures tied to the S&P 500 rose 0.60%, Dow Jones Industrial Average futures jumped 0.74% (303 points), and Nasdaq Composite futures advanced 0.35%.

Wall Street is reacting positively to an announcement from China’s Commerce Ministry that Beijing is “evaluating” the current state of affairs in the trade war with the US. This declaration represents the first step toward potentially lowering the reciprocal tariffs that have disrupted global trade in recent weeks.

The major indexes are on pace for their second consecutive winning week. Through Thursday, the S&P 500 was up 1.4% for the week, while the Dow gained 1.6%, and the Nasdaq climbed 1.9%.

April Jobs Report Takes Center Stage

Today’s most anticipated economic event is the April jobs report, scheduled for release at 8:30 a.m. ET. Economists expect a significant slowdown in job growth, with forecasts of approximately 133,000-138,000 new positions added last month, down sharply from the 228,000 jobs created in March. The unemployment rate is expected to hold steady at 4.2%.

This jobs report is particularly significant as it’s the first since President Trump’s “Liberation Day” tariffs announcement on April 2, which created substantial market volatility. Investors will scrutinize the data for signs of how these trade policies might be affecting the broader economy.

The report follows Wednesday’s GDP data showing the US economy contracted by 0.3% at an annualized pace in the first quarter, largely due to a surge in imports as businesses and households rushed to purchase goods ahead of tariff implementation.

Tech Earnings Drive Market Sentiment

Apple (AAPL) and Amazon (AMZN) reported earnings after Thursday’s market close, with mixed results affecting their stock prices in extended trading. Apple beat overall earnings expectations but slid 4% after its Services division revenue fell short of Wall Street estimates. The iPhone maker also warned of approximately $900 million in additional costs in the current quarter due to tariffs.

Amazon dropped 2% despite beating top and bottom-line expectations, as its second-quarter operating income guidance range missed analysts’ estimates. The e-commerce giant specifically cited “tariffs and trade policies” as factors affecting its outlook.

These results follow strong performances from Microsoft (MSFT) and Meta Platforms (META) on Wednesday, which helped revive the artificial intelligence trade and pushed the tech sector higher. Microsoft shares have climbed nearly 20% over the past month, fueled by growth in AI and cloud computing demand.

Looking Ahead: Market Events to Watch

As earnings season continues, investors should monitor upcoming reports from major companies. Nearly two-thirds of S&P 500 constituents have already announced their results, with 76% posting earnings that have surpassed estimates.

Beyond earnings, market participants remain focused on developments in US-China trade relations and potential policy shifts that could impact global commerce. The US Chamber of Commerce has urged the Trump administration to implement a “tariff exclusion process” to protect companies, especially smaller businesses, from the full impact of the duties.

Gold is heading for consecutive weekly losses for the first time in 2025 after reaching record highs last week. The precious metal touched $3,500 before starting a sharp decline as strong tech earnings pulled investors back into the stock market despite recent trade war-induced volatility.

As uncertainty persists, traders will continue to monitor economic data releases and corporate guidance for clues about the market’s direction in the coming weeks.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. We are not financial professionals. The authors and/or site operators may hold positions in the companies or assets mentioned. Always do your own research before making financial decisions.