Wall Street ended the week on a high after a better-than-expected US payrolls report for April calmed recession fears and extended the S&P 500’s longest winning streak in over two decades.
The S&P 500 closed up 1.47% on Friday at 5,686, its ninth consecutive day of gains — the longest run since 2004. The Dow Jones added 564 points, while the Nasdaq gained 1.5% to finish just shy of 18,000. April’s jobs report showed 177,000 new roles added, beating expectations and reassuring investors after a shaky start to the month.
Markets were already buoyed by signs of possible trade talks with China. Officials in Beijing said they are evaluating the potential for negotiations but reiterated that the US must show “sincerity” by removing tariffs.
Fed to hold steady as inflation concerns persist
Investors are now looking ahead to the Federal Reserve’s policy decision this Wednesday. Despite pressure from President Donald Trump and Treasury Secretary Scott Bessent to cut rates, Fed Chair Jerome Powell is expected to hold steady. Futures markets suggest just a 7% chance of a rate cut this week, though a move in June remains on the table.
Buffett sets timeline for Berkshire handover
Warren Buffett has announced plans to step down as CEO of Berkshire Hathaway at the end of 2025, with Vice-Chair Greg Abel set to succeed him. The decision, revealed at Berkshire’s annual shareholder meeting in Omaha, marks the culmination of a decades-long succession plan. Buffett, now 94, said he will remain involved informally and is retaining his full stake in the company, calling the decision “an economic one” in favour of Abel’s leadership.
Trump budget slashes domestic spending, boosts defence
President Trump unveiled a 2026 “skinny budget” on Friday, proposing deep cuts to environmental, education, and health programs while boosting defence and homeland security spending to over US$1tn. Several agencies, including the EPA, CDC, and Corporation for Public Broadcasting, face sharp reductions or elimination. The proposal, spearheaded by Elon Musk’s cost-cutting unit DOGE, faces strong resistance in Congress and is unlikely to pass in full but sets the stage for contentious budget negotiations.
Federal Election Delivers Economic Mandate
Australia’s 2025 federal election concluded with Prime Minister Anthony Albanese’s Labor Party securing a decisive majority, winning at least 86 seats in the 150-member House of Representatives. This marks the first time since 1901 that a Labor leader has achieved consecutive terms with an increased majority.
The opposition Liberal Party suffered significant losses, including the defeat of leader Peter Dutton in his own seat.
The government’s agenda includes increased public spending on healthcare, renewable energy and housing.
Commodities and the dollar
WTI crude is trading 1.6% lower at US$58.29 a barrel, on the back of OPEC+’s decision to increase production for June.
Brent crude is trading 1.35% lower at US$61.29 a barrel.
Spot gold is trading 0.04% higher at US$3,240.49 an ounce.
One Australian dollar is buying 64.56 US cents.
Futures
The SPI futures are pointing to a 32 point rise.
