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NEW YORK (AP) — Stocks rose in morning trading on Wall Street Friday following a stronger-than-expected report on the U.S. job market.
The S&P 500 gained 1.3%, putting the index on track for a ninth straight day of gains. The Dow Jones Industrial Average rose 449 points, or 1.1%, as of 11:06 a.m. Eastern. The Nasdaq composite rose 1.4%.
The gains were broad. Technology stocks were among the companies doing the heaviest lifting. Microsoft surged 2.1% and Nvidia rose 2.6%. Apple, however, fell 3.3% after the iPhone maker estimated that tariffs will cost it $900 million.
Banks and other financial companies also made solid gains. JPMorgan Chase rose 2.1% and Visa jumped 1.6%.
Employers added 177,000 jobs in April. That marks a slowdown in hiring from March, but it was solidly better than economists anticipated. However, the latest job figures don’t yet reflect the effects on the economy of President Donald Trump’s across-the-board tariffs against America’s trading partners. Many of the more severe tariffs that were supposed to go into effect in April were delayed by three months, with the notable exception of tariffs against China.
“We’ve already seen how financial markets will react if the administration moves forward with their initial tariff plan, so unless they take a different tack in July when the 90-day pause expires, we will see market action similar to the first week of April,” said Chris Zaccarelli, chief investment officer for Northlight Asset Management.
The S&P 500 slumped 9.1% during the first week of April as Trump announced a major escalation of his trade war with more tariffs. The market has now clawed back its losses since then, helped by a string of resilient earnings reports from U.S. companies, hopes for de-escalation of trade tensions with China and expecations that the Federal Reserve will still be able to cut rates a few times this year.
The job market is being closely watched for signs of stress amid trade war tensions. Strong employment has helped fuel solid consumer spending and economic growth over the last few years. Economists are now worried about the impact that taxes on imports will have on consumers and businesses, especially about how higher costs will hurt hiring and spending.
The economy is already showing signs of stress. The U.S. economy shrank at a 0.3% annual pace during the first quarter of the year. It was slowed by a surge in imports as businesses tried to get ahead of Trump’s tariffs.
The current round of tariffs and the on-again-off-again nature of Trump’s policy has overshadowed planning for businesses and consumers. Companies have been cutting and withdrawing financial forecasts because of the uncertainty over how much tariffs will cost them and how much they will squeeze consumers and sap spending.