U.S. stocks rallied on Friday, driven by unexpectedly strong job growth and fresh signals from China regarding trade talks, easing recent tariff worries.

The S&P 500 extended its winning streak to nine days—the longest in two decades.

The S&P 500 rose by 1.47%, marking its ninth consecutive gain, the longest since November 2004. The Dow Jones Industrial Average climbed 1.39%, adding over 570 points, while the Nasdaq Composite increased by 1.51%.

Market reactions were favorable to the Labor Department’s employment report for April, which highlighted an increase of 177,000 nonfarm payrolls, far exceeding economists’ expectations of around 135,000.

The unemployment rate held steady at 4.2%, demonstrating continued resilience in the labor market despite facing recent economic hurdles.

China’s openness for discussion

Investor sentiment was also boosted by indications of a potential thaw in U.S.-China trade relations.

China’s Commerce Ministry announced it is reviewing recent U.S. proposals and signaled a willingness to initiate formal talks if the U.S. retracts new tariffs.

This willingness from Beijing was seen as a shift in stance following President Trump’s “Liberation Day” tariff announcements on April 2.

The promising job data and optimistic trade news helped alleviate concerns stemming from recent Big Tech earnings reports.

Apple shares dropped nearly 5% after revealing that tariffs could cost the company $900 million this quarter, while Amazon’s shares stayed flat after offering guidance that underwhelmed analysts.

Despite the positive outlook on Friday, caution remains among investors. Market participants are vigilantly monitoring interest rate trends, as traders adjust their expectations for a June Fed rate cut.

Treasury yields increased, and the dollar dipped slightly as markets recalibrated.