US Stocks Surge: Dow Leads Gains on Jobs Growth and Renewed China Trade Talks

Dow Surges Over 400 Points on Jobs Beat, Tech Strength, and Trade Optimism

U.S. stocks extended gains Friday as traders welcomed stronger-than-expected April payrolls and early signs of progress on U.S.-China trade relations.

The Dow Jones Industrial Average jumped more than 400 points shortly after the open, rising 1.2%, with theS&P 500 and Nasdaq also gaining over 1%. A robust labor market print and bullish follow-through in mega-cap tech underpinned the move.

What’s fueling the broad move higher?

Nonfarm payrolls grew by 177,000 in April, easily topping the 133,000 forecast, while the unemployment rate held steady at 4.2%. Despite recent signs of slowing—like a 0.3% GDP contraction and jobless claims rising above expectations—the labor market remains resilient. Traders viewed this as a green light for risk, at least near term.

Sentiment also improved after China signaled potential interest in renewing trade talks, though officials insisted the U.S. must lift existing tariffs as a prerequisite. With the White House’s 90-day pause on tariffs set to expire soon, markets are bracing for clarity.

Who’s driving the Dow higher?

Mega-cap tech is doing the heavy lifting. Microsoft surged more than 7% in early trade after strong earnings and continued AI enthusiasm pushed shares above $425. Amazon gained over 3%, rebounding on upbeat quarterly results despite soft guidance tied to trade policy concerns. NVIDIA rose another 2.5%, maintaining momentum as investors bet on sustained AI infrastructure demand.

Caterpillar and Goldman Sachs also posted early gains, up 1.5% and 1.2% respectively. The machinery maker is catching a bid on hopes of easing trade headwinds, while the bank benefits from higher yields and a solid earnings backdrop.

What’s lagging?

Apple slid 3% after flagging $900 million in expected costs from tariffs this quarter, even as it beat headline earnings. Chevron dropped 2% after posting a 30% drop in quarterly profits, pressured by an 18% decline in crude prices year-to-date.

What should traders focus on now?

The near-term backdrop favors continued upside, but traders should stay nimble. CPI data next week will be critical—any sign of softening inflation could further extend the rally, particularly in tech and discretionary.

Meanwhile, tariff headlines remain a wildcard. With strong participation across sectors and earnings surprises running at 76%, the path remains constructive, but expect headline-driven moves to persist.

Watch for rotation into cyclicals and financials as the Fed narrative evolves.

More Information in our Economic Calendar.