U.S. stocks capped a robust week with the S&P 500 climbing 2.9% to 5,686.67, marking its ninth consecutive daily gain—the longest winning streak since 2004. The Nasdaq Composite surged 3.4% to 17,977.73, while the Dow Jones Industrial Average added 3.0% to 41,317.43. Optimism over potential U.S.-China trade talks and a strong April jobs report fueled the rally, though Warren Buffett’s announcement of his retirement as Berkshire Hathaway’s CEO stole headlines.
The week’s gains erased April’s tariff-driven losses, with the S&P 500 now up 18% from its April 7 low. Technology led the charge, with Microsoft Corp. jumping 11%, Palantir Technologies Inc. gaining 10%, and Meta Platforms Inc. rising 9%. Financials also shone, with Wells Fargo & Co. up 5.8% and Mastercard Inc. advancing 4.8%. Semiconductors contributed, as Broadcom Inc. and Nvidia Corp. rose 5.9% and 3.1%, respectively.
Buffett’s retirement news, delivered at Berkshire’s annual meeting in Omaha, sent ripples through markets. The 94-year-old investor will step down as CEO by year-end, handing the reins to Vice Chairman Greg Abel while retaining his role as chairman and portfolio manager. Berkshire’s stock dipped 1.8% in after-hours trading, reflecting investor unease about the transition, though analysts like Barclays’ James Feldman noted Abel’s “proven track record” could stabilize sentiment. The announcement overshadowed broader market exuberance, with posts on X calling it “the end of an era.”
A Labor Department report showing 177,000 jobs added in April—above the 138,000 expected—bolstered confidence, signaling labor market resilience despite tariff uncertainties. The unemployment rate held at 4.1%, and consumer confidence ticked up, supporting hopes for sustained spending.
Trade developments drove sentiment midweek. Reports that China was open to negotiations to ease Trump administration tariffs, including a 145% levy on Chinese imports, sparked a relief rally. President Trump’s comments about “200 deals” in the coming weeks added fuel, though volatility lingered as investors awaited clarity. The U.S. dollar index fell 0.2% to 100, and the 10-year Treasury yield rose to 4.32%, reflecting mixed signals on economic growth.
Bitcoin surged to $97,100, nearing $100,000, as investors sought hedges amid trade uncertainty. Gold futures climbed 0.8% to $3,245 an ounce, down from a recent $3,500 peak. West Texas Intermediate crude slipped 1.8% to $61.90 a barrel, pressured by softening demand forecasts.
“The market’s shrugging off tariff fears for now, but Buffett’s exit is a reminder of how much psychology drives stocks,” said Lori Calvasina, head of U.S. equity strategy at RBC Capital Markets. She cautioned that a “growth scare” could trigger a 14-20% pullback if trade talks falter.
The Russell 2000, a small-cap gauge, gained 1.82%, underperforming larger indices but showing strength with a 16% rise from its April low. Globally, markets mirrored Wall Street’s optimism: Japan’s Nikkei 225 rose 3.41%, Germany’s DAX advanced 3.38%, and Hong Kong’s Hang Seng climbed 2.69%.
By: DNU staff