U.S. Stocks on Track for Rare Nine-Day Winning Streak

The Dow and S&P 500 are on track to achieve a nine-day winning streak, last occurring in January 1992. The Dow gained 545 points, or 1.3%, on Friday, while the S&P 500 increased by 1.4%. This rare occurrence has not happened in over three decades, highlighting the current market's positive momentum.

The Dow Jones Industrial Average (DJIA) and the S&P 500 Index are on track to achieve a nine consecutive trading days of gains, a feat not seen since January 1992. On Friday, the Dow surged by 545 points, or 1.3%, while the S&P 500 rose by 1.4%, extending their winning streaks to nine days [1].

The rally, which began in April, has been driven by stronger-than-expected job growth and easing U.S.-China trade tensions. The latest jobs report showed that the U.S. added 177,000 jobs in April, exceeding economist expectations. This positive data, coupled with hopes for a potential de-escalation in trade tensions, has bolstered investor confidence [2].

Despite a few weak earnings reports and ongoing tariff uncertainty, the market has been resilient. The S&P 500, for instance, has regained all the losses it incurred during the first week of April, when President Donald Trump's trade war escalation caused significant market volatility. However, the index remains down 3.3% for the year and is still 7.4% below its record high from February [2].

The recent rally has been broad-based, with nearly 90% of S&P 500 stocks advancing. Technology stocks, such as Microsoft and Nvidia, led the charge, while financial companies like JPMorgan Chase and Visa also posted strong gains [2]. This sector-wide optimism indicates a high level of investor confidence, despite the looming uncertainty surrounding tariffs.

However, not all companies have benefited from the rally. Block Inc., the parent company of Cash App, saw its shares plunge 20.4% after reporting a sharp drop in first-quarter profit. The energy sector, too, faced challenges, with Exxon Mobil and Chevron posting their lowest Q1 profits in years due to falling crude oil prices [2].

The bond market also showed signs of movement, with the 10-year Treasury yield rising to 4.31% from 4.22% a day earlier. Higher yields can be a sign of growing confidence in the economy, but they also raise borrowing costs for businesses and consumers, which could slow growth if they climb too quickly [2].

The nine-day Wall Street winning streak has given investors something to cheer about. However, the uncertainty around tariffs and the July deadline for the 90-day tariff pause continue to cast a shadow over the market. If trade talks with China and other nations move in a positive direction, and if the Federal Reserve stays open to rate cuts, the market could keep gaining ground. For now, investors remain cautiously optimistic, but all eyes are on what happens next in the trade war [2].

References:
[1] https://www.barrons.com/livecoverage/stock-market-today-050225/card/dow-s-p-500-on-track-for-nine-day-winning-streak-yNHr4wIyeHNukNOK8hLi
[2] https://m.economictimes.com/news/international/us/wall-street-predictions-for-next-week-after-9-days-of-straight-gains-will-the-sp-500-and-nasdaq-continue-the-momentum-here-are-the-key-pointers/articleshow/120850717.cms