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Indexes up: Dow 0.87%, S&P 500 1.07%, Nasdaq 1.24%

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April nonfarm payrolls beat estimates

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Apple ( AAPL ) slips as tariff costs weigh

(Updates with late morning prices)

By Sruthi Shankar and Purvi Agarwal

May 2 (Reuters) - U.S. stock indexes rose on Friday,

putting the S&P 500 on track for its longest winning streak in

over 20 years, as upbeat payrolls data and signs of easing

U.S.-China trade tensions soothed concerns around tariff-driven

risks to the economy.

The Labor Department's closely watched employment report

showed nonfarm payrolls increased by 177,000 in April, exceeding

expectations, and unemployment rate held steady at 4.2%.

"This is good employment data which suggests that the

economy remains strong," said Melissa Brown, managing director

of investment decision research at Simcorp. "We could see these

numbers go down as the impact of tariffs really starts to make

its way through the economy, but it's not there yet."

Friday's numbers also helped ease fears that the U.S.

economy was close to recession, after gross domestic product

contracted in the first quarter due to a tariff-induced flood of

imports.

In another positive for markets, Beijing said on Friday it

was "evaluating" an offer from Washington to hold talks over

U.S. President Donald Trump's 145% tariffs on China.

The tit-for-tat tariffs between the world's two largest

economies have kept investors on edge, with both sides unwilling

to be seen backing down in a trade war that has roiled global

markets.

Still, Trump's reversal of some tariffs has helped U.S.

stock indexes recover from recent losses. The tech-heavy Nasdaq

was trading at levels last seen before April 2, dubbed

"Liberation Day", when the president unveiled massive global

tariffs.

The S&P 500 was headed for its ninth consecutive session

of gains, while the Dow was also on track for a nine-day winning

streak, its first since December 2023.

At 11:27 a.m. ET, the Dow Jones Industrial Average

rose 353.32 points, or 0.87%, to 41,106.28. The S&P 500

gained 61.10 points, or 1.07%, to 5,665.24 and the Nasdaq

Composite gained 219.97 points, or 1.24%, to 17,930.71.

The three indexes were set for their second consecutive week

of gains.

Despite signs of reprieve on the trade front, erratic

changes in U.S. tariff policies have forced some companies to

warn of business impacts or pull earnings forecasts amid worries

of higher costs and a hit to economic growth.

Apple ( AAPL ) fell 3.9% after the iPhone maker trimmed its

share buyback program by $10 billion and CEO Tim Cook told

analysts that tariffs could add about $900 million in costs this

quarter.

Amazon.com ( AMZN ) dipped after it forecast second-quarter

operating income below estimates.

Oil giant Chevron ( CVX ) rose marginally, while Exxon Mobil ( XOM )

slipped after both reported quarterly results.

Block slumped more than 21% after cutting its profit

forecast for 2025 and missing estimates for quarterly earnings.

Videogame maker Take-Two Interactive fell 6.5%

after it delayed the release of "Grand Theft Auto VI" to May

2026.

Advancing issues outnumbered decliners by a 3.9-to-1 ratio

on the NYSE and a 3.03-to-1 ratio on the Nasdaq.

The S&P 500 posted 10 new 52-week highs and 3 new lows while

the Nasdaq Composite recorded 41 new highs and 26 new lows.

(Reporting by Sruthi Shankar and Purvi Agarwal in Bengaluru;

Editing by Devika Syamnath)