U.S. stocks gained on Friday. Will the rally continue?

U.S. stocks traded in the green on Friday. They also managed to hold onto gains after a regular-session rally on Thursday. The Nasdaq moved into positive territory, rising by 1.1% to 9,207.75. The S&P 500 futures also jumped by 1.13% to 2,912.5, while the Dow Jones futures added 1.11% to 24,107.00.

Meanwhile, Treasury Secretary, Steven Mnuchin, and U.S. Trade Representative, Robert Lighthizer, spoke with China’s Vice Premier, Liu He. They agreed that the discussions over the implementation of the phase one U.S.-China trade deal are progressing well so far.

According to the U.S. Trade Representative’s official statement, both countries fully expect to meet their obligations under the agreement in time. It helped to assuage concerns of escalating tensions between the two countries amid the coronavirus pandemic, which President Donald Trump has blamed on China.

However, investors awaited the U.S. Labor Department’s April jobs report, which was due on Friday. They expected the data to show U.S. employers slashed 22 million payrolls for the month. If proven right, it will be the highest point on record, in recorded data extending back to 1939.

Furthermore, experts speculate that the unemployment rate will show a 16.0% growth compared to 4.4% in March. That would be a record as well based on the monthly Bureau of Labor Statistics data going back to 1948.

What about Unemployment insurance claims?

On Thursday, weekly unemployment insurance claims have added nearly 3.2 million reports since May 2. All in all, there were 33 million claims since March 20. Despite that, the stocks continue rising. Energy and Financials sectors gained the most on Thursday. As they were the worst performers in the S&P 500 in 2020, such an increase is significant. The other industries that have deeply underperformed during the pandemic climbed up too, some airline and cruise line stocks among them.

Investors are planning to reopen businesses. They have taken bad data in stride so far, as it seems the situation is improving, and the pandemic is going to end step by step. While it’s hard to tell for now how long the rally will last, some experts are optimistic that it will be long-term.