US stocks extend winning streak to nine, erase all losses since reciprocal tariff announcement
Confirmation that China is open to trade talks with the US along with better-than-expected US job growth in April fueled another day of gains for stocks, with the S&P 500 up 1.5%, the Nasdaq 100 gaining 1.6%, and the Russell 2000 booking a 2.3% advance.
The S&P 500 has now reclaimed all of its losses since the April 2 reciprocal tariffs announcement.
It’s the first set of back-to-back weekly gains in excess of 2% for the benchmark index since October 2022. And the S&P 500 has now equaled its record stretch of consecutive gains while below the 200-day moving average with nine days, tying streaks seen in 1970, 1973, and 1981.
Every S&P 500 sector ETF rose at least 1% except for consumer staples and utilities, two more defensive pockets of the market. Financials led the way higher.
The big day for stocks came despite retreats from the two Magnificent 7 constituents that reported earnings after the close on Thursday.
Apple sank as its top- and bottom-line beat was overshadowed by weakness in its China business and worries that its strong iPhone sales were a one-off rush to beat potential tariffs. Amazon finished modestly lower after reporting solid Q1 earnings but a Q2 outlook that disappointed the Street.
Five Below was one of the major positive surprises of the day, raising its first-quarter guidance despite facing intense operational challenges linked to its supply chains in China. Shares jumped double digits.
AppLovin also rose double digits after Wedbush suggested the stock could be a huge beneficiary of a recent court order that stops Apple from collecting commissions on off-app purchases.
Strategy’s big earnings miss and light revenues didn’t stop traders from bidding up the stock.
Instacart rose on the heels of solid Q1 results that included impressive order growth.
Palantir shares finished just shy of a record closing high after reports that the White House is looking to boost defense spending.
Duolingo posted strong earnings and upped its full-year forecast, sending shares soaring.
On the other hand, Block was a big loser after the fintech firm did the opposite: missing on earnings and revenues while lowering its full-year guidance. Roku also slumped after issuing a cautious full-year outlook, while Take Two tanked after pushing back the release of “GTA 6” from the fall of this year to May 26, 2026.
