U.S. stocks closed higher, with the blue-chip Dow and broad S&P 500 indexes scoring their ninth consecutive day of gains, on news China may be open to trade talks with the U.S.
China is exploring ways to address the U.S. concerns over the Asian nation’s role in the fentanyl crisis, possibly opening the door to talks, according to the Wall Street Journal.
Chinese leader Xi Jinping’s security czar, Wang Xiaohong, has been inquiring about what the Trump administration wants China to do when it comes to the chemical ingredients used to make fentanyl but noted discussion remain fluid, the WSJ said, citing sources. China reportedly also wants to see some softening of President Donald Trump’s stance against China.
The Dow advanced 1.39%, or 564.47 points, to 41,317.43 the S&P 500 added 1.47%, or 82,53 points, to 5,686.67; and the tech-heavy Nasdaq gained 1.51%, or 266.99 points, to 17,977.73. The benchmark 10-year yield rose to 4.308%. Nine straight days of wins is the S&P 500’s longest streak in 20 years.
All three indexes ended higher for the second consecutive week. The S&P 500 and Nasdaq have both recovered all their tariff-related losses since April 2, the day Trump announced his aggressive tariff plan.
Earlier, China also hinted in a statement it’s considering tariff talks with the U.S. and quietly exempted a quarter of imported U.S. products from tariffs, Bloomberg reported.
“The U.S. has recently sent messages to China through relevant parties, hoping to start talks with China,” China’s Commerce Ministry said in a Friday statement. “China is currently evaluating this.”
All of this signals a pivot to possible thawing in U.S.-China relations after Trump hiked tariffs as high as 145% and Beijing retaliated. Over the past week, Trump has insisted the U.S. has been in talks with China about tariffs, but China vehemently denied that. China had vowed earlier to “fight to the end” against Trump’s steep tariffs.
Separately, China exempted about 131 products that likely cover around $40 billion worth of imports, in what looks like an effort to soften the blow of the trade war on its own economy, Bloomberg reported. Exempted products include pharmaceuticals and industrial chemicals. It hasn’t been officially confirmed, but at least half a dozen companies in China have been able to bring in goods from the list without paying tariffs, Bloomberg said, citing sources.
Job market is OK
Investors who were worried about the labor market cratering under mass federal layoffs and tariffs slowing investments found some relief Friday morning in the monthly jobs report. The economy added 177,000 jobs in April, handily topping the average 135,000 forecast, according to FactSet. The unemployment rate remained at 4.2%.
“No signs of tariff stress in the labor market yet − strong hiring and stable wages,” said Jamie Cox, managing partner for Harris Financial Group. “If you are going to embark on a trade war and your economy is consumption based, this is the leverage you want.”
Corporate news
Stocks to watch include:
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Amazon’s results in the first three months of the year topped Street estimates, but its current quarter outlook was just shy of forecasts. It pointed to tariffs and trade policies that could cause consumers to cut spending. Shares dipped 0.12%.
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Apple’s fiscal second-quarter results beat Wall Street forecasts, but the company’s services division came in light. It said it expects to add $900 million in costs in the current quarter due to tariffs. Shares fell almost 4%.
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Oil company Chevron’s earnings missed analysts’ forecasts. Shares were up almost 2%.
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Take-Two Interactive’s delaying its release of “Grand Theft Auto VI” to May 26, 2026 from fall 2025. The video game is considered one of the most anticipated games in history. Shares slid 6.66%.
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Exxon Mobil’s earnings in the first three months of the year topped Street forecasts. Shares of the oil giant edged up slightly.
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Reddit said earnings and revenues in the first three months of the year topped analysts’ estimates and offered surprisingly strong sales guidance for the current quarter. Shares fell 4.18%.
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Airbnb’s first-quarter results met forecasts, but the vacation home rental platform sees the next quarter’s sales below Street views. It noted “softness” in travel from Canada to the U.S. toward the end of the quarter. Shares rose 1%.
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Duolingo raised its full-year sales and profit outlook above Street forecasts as artificial intelligence offerings are driving users to its higher-priced subscriptions. Shares rallied 21.61%.
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Instacart lifted its full-year outlook after the grocery delivery company posted its strongest order growth since 2022 and topped earnings expectations in the first three months of the year. Shares jumped 13.62%.
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Digital payments company Block posted first-quarter results below analysts’ estimates and lowered its full-year profit guidance due to a more challenging macroeconomic environment. Shares dropped 20.43%.
Cryptocurrency
MicroStrategy raised its full-year bitcoin yield target to 25% from 15% and announced a $21 billion common stock equity offering to purchase more bitcoin even after announcing disappointing quarterly results due to the recent decline in bitcoin prices.
Bitcoin was last up 0.54% at $97,013.07.
This story was updated with new information.
Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.
This article originally appeared on USA TODAY: S&P 500 scores longest win streak in 20 years. China mulls trade talks
