Mon May 05 13:50:00 UTC 2025: ## US Stocks Soar on China Trade Talks and Strong Job Growth

**New York, NY** – US stocks surged Friday, fueled by renewed optimism over potential trade talks between the US and China and better-than-expected April jobs data. The S&P 500 jumped 1.5%, the Nasdaq 100 gained 1.6%, and the Russell 2000 soared 2.3%, completely erasing losses incurred since reciprocal tariffs were announced in April. This marks the first back-to-back weekly gains exceeding 2% for the S&P 500 since October 2022.

The positive market sentiment was driven by a statement from China’s Ministry of Finance indicating openness to trade negotiations with the US. While the statement wasn’t explicitly positive, the suggestion of potential dialogue was enough to boost investor confidence, particularly among Chinese companies trading on US exchanges.

Strong performance was seen across most S&P 500 sectors, with financials leading the charge. However, some individual company performances were mixed. While Apple and Amazon saw declines despite exceeding earnings expectations, other companies reported significant gains. Five Below surged on a positive first-quarter guidance update, and AppLovin saw double-digit gains following a court ruling limiting Apple’s commission on in-app purchases. This ruling is expected to benefit game developers and companies like AppLovin and Unity Software significantly. Palantir also approached record highs on reports of increased US defense spending. Conversely, Block and Roku slumped after issuing disappointing outlooks, and Take Two Interactive saw a sharp drop after delaying the release of “GTA 6.”

Nvidia CEO Jensen Huang’s substantial compensation increase, reflecting the company’s stellar performance, also added to the positive market narrative. His total compensation reached $344.2 million for the last fiscal year, according to the “compensation actually paid” metric.

The market’s positive response underscores the significant influence of geopolitical developments and corporate earnings on investor sentiment. The renewed hope for US-China trade talks, coupled with robust job growth, provided a powerful catalyst for a significant market rally.

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