**Investors Cheer as US-China Trade Talks Resume, Markets Rally**

Wall Street this week saw a cautious rally with hopes that President Donald Trump might soften his stance on the ongoing trade war with China. On Friday, these hopes were reinforced when Trump announced that the next round of US-China trade talks would commence on Monday. This announcement propelled the S&P 500 to close at its highest point since February.

In the latest development, Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, along with US Trade Representative Jamieson Greer, will meet with Chinese representatives in London. This news was shared by Trump on social media. The Dow Jones Industrial Average surged by 443 points, or 1.05%, while the S&P 500 climbed 1.03%, and the Nasdaq Composite increased by 1.2%. Despite Trump's post coming late in the day, the market carried this optimistic sentiment into a robust close for the week, with all three major indexes posting consecutive weekly gains.

"The meeting should go very well," Trump stated, anticipating a positive outcome. This comes amidst a tough tariff war between the US and China as Trump aims to rectify what he perceives as imbalanced global trade practices. Following a 90-minute call between Trump and Chinese President Xi Jinping on Thursday, Trump expressed optimism that trade tensions might soon ease.

Glen Smith, CIO at GDS Wealth Management, noted that while uncertainty over tariffs remains, the stock market is looking forward and factoring in a potential easing of trade fears. "The rhetoric on tariffs is much tougher than the action," Smith commented.

Adding to the positive market sentiment, stock futures rose after a slightly better-than-expected jobs report. The Labor Department data showed 139,000 jobs were added last month—although a slowdown from the prior month, it exceeded expectations. This came as a relief after an ADP report earlier in the week showed an unexpected decline in private-sector hiring.

However, some analysts, like Steve Wyett, Chief Investment Strategist at BOK Financial, caution that the full impact of tariffs on economic metrics such as jobs, growth, and inflation might not manifest for several months.

In terms of individual stocks, Tesla rebounded by 3.67% after experiencing a 14% drop the previous day, which saw a roughly $152 million decline in its market value. Friday’s recovery brought some relief, though Tesla's market value remains significantly down over the past two days.

Bond yields also rose as traders recalibrated their expectations for Federal Reserve rate cuts this year, spurred by a resilient labor market. Analysts from Bank of America and Northlight Asset Management suggest that the Fed should hold off on cutting rates for now, given the labor market’s stability and unmaterialized impacts of tariffs on inflation.

As anticipation builds for Monday's talks, investors will closely watch for any breakthroughs that might further calm the turbulent waters of international trade relations. Despite the ongoing tariff drama, Wall Street appears cautiously optimistic as the S&P 500 continues its upward trajectory.