U.S. stocks took another leg up around midday on news China is exploring ways to address the U.S. concerns over the Asian nation’s role in the fentanyl crisis, possibly opening the door to talks, according to the Wall Street Journal.
Chinese leader Xi Jinping’s security czar, Wang Xiaohong, has been inquiring about what the Trump administration wants China to do when it comes to the chemical ingredients used to make fentanyl but noted discussion remain fluid, the WSJ said, citing sources. China reportedly also wants to see some softening of President Donald Trump‘s stance against China.
At 12:24 p.m. ET, the blue-chip Dow soared 1.48%, or 604.10 points, to 41,357.06; the broad S&P 500 added 1.56%, or 87.68 points, to 5,691.82; and the tech-heavy Nasdaq gained 1.75%, or 309.17 points, to 18,019.91. The benchmark 10-year yield rose to 4.324%. The S&P 500 is on pace to extend its winning streak to nine days, which would be the longest in 20 years.
Earlier, China hinted in a statement it’s considering tariff talks with the U.S. and quietly exempted a quarter of products from U.S. imports from tariffs, Bloomberg reported.
“The U.S. has recently sent messages to China through relevant parties, hoping to start talks with China,” China’s Commerce Ministry said in a Friday statement. “China is currently evaluating this.”
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The comments signal a possible thawing in U.S.-China relations after Trump hiked tariffs as high as 145% and Beijing retaliated. Over the past week, Trump has insisted the U.S. has been in talks with China about tariffs, but China vehemently denied that. China had vowed earlier to “fight to the end” against Trump’s steep tariffs.
Separately, China exempted about 131 products that likely cover around $40 billion worth of imports, in what looks like an effort to soften the blow of the trade war on its own economy, Bloomberg reported. Exempted products include pharmaceuticals and industrial chemicals. It hasn’t been officially confirmed, but at least half a dozen companies in China have been able to bring in goods from the list without paying tariffs, Bloomberg said, citing sources.
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Job market is OK
Investors who were worried about the labor market cratering under mass federal layoffs and tariffs slowing investments found some relief this morning in the monthly jobs report. The economy added 177,000 jobs in April, handily topping the average 135,000 forecast, according to FactSet. The unemployment rate remained at 4.2%.
“No signs of tariff stress in the labor market yet − strong hiring and stable wages,” said Jamie Cox, managing partner for Harris Financial Group. “If you are going to embark on a trade war and your economy is consumption based, this is the leverage you want.”
Stocks to watch include:
- Amazon’s results in the first three months of the year topped Street estimates, but its current quarter outlook was just shy of forecasts. It pointed to tariffs and trade policies that could cause consumers to cut spending. Shares gained 1.27%.
- Apple’s fiscal second-quarter results beat Wall Street forecasts, but the company’s services division came in light. It said it expects to add $900 million in costs in the current quarter due to tariffs. Shares fell almost 4%.
- Oil company Chevron’s earnings missed analysts’ forecasts. Shares were up almost 2%.
- Take-Two Interactive’s delaying its release of “Grand Theft Auto VI” to May 26, 2026 from fall 2025. The video game is considered one of the most anticipated games in history. Shares slid 6%.
- Exxon Mobil’s earnings in the first three months of the year topped Street forecasts. Shares of the oil giant edged up slightly.
- Reddit said earnings and revenues in the first three months of the year topped analysts’ estimates and offered surprisingly strong sales guidance for the current quarter. Shares added 2.69%.
- Airbnb’s first-quarter results met forecasts, but the vacation home rental platform sees the next quarter’s sales below Street views. It noted “softness” in travel from Canada to the U.S. toward the end of the quarter. Shares rose just less than 1%.
- Duolingo raised its full-year sales and profit outlook above Street forecasts as artificial intelligence offerings are driving users to its higher-priced subscriptions. Shares rallied 18.3%.
- Instacart lifted its full-year outlook after the grocery delivery company posted its strongest order growth since 2022 and topped earnings expectations in the first three months of the year. Shares jumped 13%.
- Digital payments company Block posted first-quarter results below analysts’ estimates and lowered its full-year profit guidance due to a more challenging macroeconomic environment. Shares dropped 21%.
Cryptocurrency
MicroStrategy raised its full-year bitcoin yield target to 25% from 15% and announced a $21 billion common stock equity offering to purchase more bitcoin even after announcing disappointing quarterly results due to the recent decline in bitcoin prices.