April Jobs Report Eases Recession Fears, Stocks Climb

NEW YORK, N.Y. — A positive jobs report for April has lifted recession fears and boosted stocks on Friday. According to the latest data, nonfarm payrolls increased by 177,000 jobs, slightly ahead of economists’ expectations but lower than March’s revised figure of 185,000. The unemployment rate remained steady at 4.2%.

Adam Gaffoglio, CEO and president of Mutual Of America Capital Management, noted the labor market’s strength amid lingering economic challenges. He said, “This underscores a resilient economy,” but warned of potential “cracks” forming. Job openings have been declining, and steady quit rates indicate that workers are becoming less confident in making job changes.

As companies take a more cautious approach, Gaffoglio emphasized the importance of monitoring job market trends moving forward. Additionally, Federal Reserve Chair Jerome Powell has indicated that there is no rush to cut interest rates, given that current inflation remains above the Fed’s target.

The updated expectations for the Federal Reserve’s rate decisions show a 34% chance for a cut in June, down from 55% the previous day. Meanwhile, the likelihood of a cut in July has risen to 55% from 44%.

In the technology sector, Apple reported better-than-expected earnings but faced a 3.7% drop in stock prices due to new tariff concerns that could raise costs by $900 million in the upcoming quarter. Apple CEO Tim Cook warned that these costs might increase in subsequent quarters, while also noting the company’s plans to shift more production to India and Vietnam.

Amazon also released its first-quarter results, which exceeded expectations but included a cautious outlook for the second quarter. CEO Andy Jassy mentioned uncertainties regarding tariffs and trade policies, indicating a challenging environment for future earnings.

The market indexes reacted positively to the news, with the NASDAQ Composite up 1.5% to 17,977, and the Dow Jones Industrial Average rising 1.4% to 41,317. The S&P 500 closed higher for the ninth consecutive day, marking its longest winning streak since November 2004. This recovery is notable considering the index was down over 15% earlier this month.

Market experts attribute this rally in part to advances in tariff negotiations, which have calmed investor nerves. Chief Market Strategist at Nationwide, Mike Hackett, remarked, “Investors’ positive response to earnings suggests expectations were appropriately reset. However, volatility may continue as market sentiment remains elevated.”

Looking ahead, numerous earnings reports are expected next week, with companies like Advanced Micro Devices and Walt Disney set to announce their latest results.