U.S. stock futures rose strongly Friday, helped by better than expected jobs growth as well as on hopes of a lessening of tensions between China and the U.S. over trade.
At 08:55 ET (12:55 GMT), Dow Jones Futures climbed 370 points, or 0.9%, S&P 500 Futures rose 54 points, or 1%, and Nasdaq 100 Futures gained 190 points, or 1%.
The main Wall Street averages started the new month on a positive note on Thursday, boosted by strong numbers from tech giants Meta Platforms (NASDAQ:META) and Microsoft (NASDAQ:MSFT).
All three indices are on pace for their second winning week in a row. The S&P 500 is on pace to rise 1.4% this week, the Dow Jones Industrial Average is up 1.6% and the NASDAQ Composite is 1.9% higher.
Payrolls release looms large
Sentiment received a boost Friday after nonfarm payrolls grew more than expected last month, indicated a degree of resilience in the labor market despite the turmoil over the Trump administration’s chaotic trade policies.
Payrolls increased by 177,000 jobs last month after rising by a downwardly revised 185,000 in March, the Labor Department’s Bureau of Labor Statistics said in its closely watched employment report on Friday.
Economists had forecast 138,000 jobs added last month after a previously reported 228,000 advance in March.
The unemployment rate remained unchanged at 4.2% last month, while average hourly earnings rose by 0.2%, a small drop from March’s 0.3% gain.
The labor market continues to show resilience amid a reluctance by employers to let go of workers after struggling to find labor during and after the COVID-19 pandemic, but warning signs are accumulating, with gross domestic product data showing the U.S. economy unexpectedly contracted in the first quarter.
China signals potential U.S. trade talks
Earlier in the day, China’s commerce ministry said that Beijing was evaluating the possibility of trade talks with the U.S., adding that any dialogue must be based on sincerity and the removal of unilateral tariffs.
The comments came in response to recent U.S. statements suggesting a willingness to engage in trade negotiations. China’s commerce ministry noted that Washington has sent signals through various channels seeking to start talks.
Global markets have been roiled this month by fears that a broader trade war could push the global economy into a recession.
Apple flags tariff hit, Amazon’s forecast disappoints
Shares of iPhone-maker Apple (NASDAQ:AAPL) fell premarket after the company said it sees about $900 million in costs for the upcoming quarter due to tariffs.
Apple posted fiscal second-quarter results that topped Wall Street estimates on better-than-expected iPhone sales, but tariff concerns dented optimism.
Meanwhile, Amazon (NASDAQ:AMZN) stock also slipped lower after the e-commerce giant reported softer guidance for the current quarter and underwhelming growth in its key cloud computing segment. 
Nearly two-thirds of the S&P 500 constituents have now announced their results, with 76% posting earnings that have surpassed estimates, according to data from FactSet.
Crude heads for hefty weekly loss
Oil prices retreated Friday, continuing to weaken even amid hopes of a scaling back in the bitter trade war between China and the U.S., the two largest economies in the world.
At 08:55 ET, Brent futures dropped 0.5% to $61.83 a barrel, and U.S. West Texas Intermediate crude futures fell 0.6% to $58.91 a barrel.
Both benchmarks are still set to post weekly losses of over 6% amid concerns that the broader trade war could push the global economy into a recession and crimp oil demand, just as the OPEC+ group is preparing to raise output.