Friday Afternoon Coffee - Markets Update - 2 May 2025 - Stocks Rise on Robust Jobs Data, Hopes for Eased U.S.-China Tensions

The Trade Academy Team
May 2
2 min read

Markets Update: Global equity markets rallied Friday as investors welcomed signs of a potential thaw in U.S.-China trade relations and a stronger-than-expected U.S. jobs report, while Treasuries sold off and commodities delivered mixed signals.

Global Markets Roundup: 2 May 2025

The MSCI World Index rose 0.6%, clawing back losses from last month’s tariff-driven slide. Optimism was sparked by China’s statement that the door remains open for negotiations, combined with data showing continued labor market resilience in the United States.

Jobs Report Lifts Sentiment Despite Trade Concerns

U.S. employers added 177,000 jobs in April, surpassing forecasts of 130,000 and easing immediate concerns of economic slowdown. The unemployment rate held at 4.2%, a steady figure that suggested economic stability, though some analysts cautioned the strength may be short-lived.

Major U.S. indexes responded positively:

S&P 500: +1.00%
Nasdaq Composite: +0.90%

Global Equities Climb

European and Asian equities joined the rally:

Europe’s Stoxx 600: +1.6%
Germany’s DAX: +2.4%
UK’s FTSE 100: +1.0%
MSCI Asia-Pacific ex-Japan: Highest since March 20

Despite the positive momentum, corporate earnings underscored the longer-term threat of tariffs. Apple warned of a $900 million impact this quarter and scaled back its buyback program. General Motors expects up to $5 billion in losses, while American Airlines pulled its profit forecast entirely.

Treasuries Slide as Yields Rise

The upbeat labor data and revived trade hopes pushed investors out of safe-haven government debt. U.S. 10-year Treasury yields rose 4 basis points to 4.27%. Analysts also pointed to geopolitical jitters, including speculation that Japan could leverage its large U.S. debt holdings in upcoming negotiations, adding to selling pressure.

Dollar Wobbles; Euro and Pound Climb

Currency markets reflected mixed sentiment. The dollar pared earlier losses but remained 1% down against the yen at USDJPY 143.8. The euro EURUSD traded up 0.3% to $1.1327, while the British pound continued its upward streak, rising 0.2% to $1.3298.

Commodities Mixed on Saudi Oil Stance and Demand Uncertainty

Crude oil slipped following reports that Saudi Arabia may not support further supply cuts:

Brent Crude: -$0.39 to $61.14/barrel
WTI Crude: -$0.43 to $58.18/barrel

Gold edged up 0.2% to $3,244/oz as lingering trade fears maintained safe-haven demand.

Grains Steady Amid Agricultural Trade Pressure

With U.S. farmers squeezed by reduced Chinese demand and stiff competition from Brazil, any progress on trade negotiations is closely watched:

Soybeans (ZS1!): +6 cents to $10.56¼/bushel
Wheat (ZW1!): +10¼ cents to $5.41¼/bushel
Corn (ZC1!): -1½ cents to $4.70¾/bushel

Outlook

Investors are cautiously optimistic, supported by economic data and diplomatic signals. Nonetheless, uncertainty remains significant, especially concerning the White House's ultimate tariff decisions. As earnings season reveals the true costs of trade tensions, markets could encounter further volatility.

Looking forward, refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.

General news - Information source from multiple newswires.

The article and the data is for general information use only, not advice!

The Trade Academy Team