The S&P 500 index posted its ninth consecutive daily gain Friday, marking the benchmark's longest winning streak since November 2004. This advance brings the market into the new week at elevated levels.
The recent climb erased losses the S&P 500 had suffered since April 2, the day the administration announced large tariffs on imported goods. Following that announcement, stocks tumbled, and the S&P 500 briefly fell into bear market territory.
Market gains were fueled partly by confirmation that China is open to trade talks with the US. Market sentiment also benefited from better-than-expected US job growth in April.
Other major indexes also rose Friday. The Nasdaq 100 gained 1.6% and the Russell 2000 advanced 2.3%. Within the S&P 500, financial stocks led gains, while defensive sectors like consumer staples and utilities saw smaller advances.
Despite the streak, views on future market direction show caution. One perspective suggests the index was rangebound between 5,000 and 5,600, and the recent gains have pushed it to the upper end of that range, reducing the potential for further upside. The S&P 500 closed Friday at 5,686.67.
Seasonal patterns may also weigh on stocks. Historically, the period between May and October has shown weaker average gains for the benchmark compared to the November-April period.
Trade uncertainty persists. While some signs of progress have appeared, the administration has not announced a concrete trade agreement with any country. On Sunday, the administration authorized a new 100% levy on movies produced outside the U.S.
Those keeping track of market movements through dow jones live feeds and other data platforms observed the S&P 500's climb, while individual stocks saw varied results based on company news and sector trends.
Among individual names, Apple shares fell after its earnings report, affected by concerns over its China business and potential tariffs. Palantir neared a record high following reports suggesting increased defense spending. Duolingo shares soared after the company released strong results and upped its forecast. Take Two dropped after it pushed back the release date for its anticipated "GTA 6" game.
"Trend damage and seasonal headwinds lead us to believe the risk/reward profile becomes less favorable into this resistance," Oppenheimer technical strategist Ari Wald wrote.
