May 2, 2025

Midday Market Roundup for Friday, May 2, 2025

Good afternoon. Here are the top four global financial and economic topics shaping markets at midday, Friday, May 2, 2025:

1. U.S. Labor Market Shows Resilience Despite Tariff Headwinds

The U.S. economy added a stronger-than-expected 177,000 jobs in April, with the unemployment rate at 4.2%. According to the Bureau of Labor Statistics, this job growth beat economists’ forecasts and helped boost market sentiment. However, economists warn that President Trump’s ongoing tariff policies and trade war have raised recession risks and increased uncertainty for businesses and consumers. While the job market remains a bright spot, business confidence is declining, and some sectors- like airlines and manufacturing- are already feeling the pinch from higher costs and disrupted supply chains467.

2. Stock Markets Rally on Strong Jobs Data and Tech Earnings

U.S. stocks surged Friday, with the S&P 500 on track for its ninth consecutive gain, erasing losses from last month’s tariff-driven selloff. The S&P 500 rose 1.2%, while the Nasdaq 100 and Dow Jones Industrial Average each gained more than 1%. Microsoft and Meta Platforms led the rally after reporting robust earnings, and Dexcom was the top S&P 500 performer following strong sales and a significant stock buyback announcement. Meanwhile, Berkshire Hathaway shares hit a record high ahead of its annual meeting 58910.

3. Block, Apple, and Amazon Face Profit Pressure from Tariffs

Not all companies are escaping the effects of trade policy. Block (formerly Square) shares plunged 22% after the company cut its 2025 profit forecast, citing weaker performance from its Cash App and rising competition. Apple’s stock fell after CEO Tim Cook warned that tariffs could cost the company $900 million this quarter. Amazon also issued cautious guidance, highlighting the risk of ongoing trade tensions impacting its future results. Analysts expect more companies to revise forecasts as the full impact of tariffs becomes clear3510.

4. Global Markets Lifted by Signs of U.S.-China Dialogue

Asian and European markets rose after China’s Commerce Ministry said it is considering U.S. overtures regarding tariffs, raising hopes for a thaw in trade tensions. Hong Kong’s Hang Seng Index jumped 1.7%, and Japan’s Nikkei gained 1%. Oil prices edged higher, and gold prices continued their climb as investors balanced optimism about trade talks with ongoing concerns about inflation and global growth. The U.S. dollar was mixed, and Treasury yields rose slightly as risk appetite improved.

Sources

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The information provided in this article is for informational purposes only and does not constitute investment, legal, or financial advice. The content is not intended as a recommendation to buy or sell any security or investment product. Readers should consult with qualified financial, legal, and tax advisors before making any investment decisions.

The views and opinions expressed are based on sources believed to be reliable, but their accuracy or completeness is not guaranteed. Any forward-looking statements are based on current expectations and projections, which may change without notice.

Investing involves risk, including the potential loss of principal. Past performance does not guarantee future results. The strategies or investments discussed may not be suitable for all investors.

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Midday Market Roundup for Friday, May 2, 2025

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