US STOCKS-Wall Street set to open higher on tariff, jobs data optimism

By Sruthi Shankar and Purvi Agarwal

May 2 (Reuters) - U.S. stocks were set to open higher on Friday, as signs of a de-escalation in the trade war with China and a strong jobs report calmed concerns around the economic toll of tariffs.

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 and upended supply chains.

Further aiding the mood on Friday, data showed nonfarm payrolls increased by 177,000 jobs in April, beating forecasts for an increase of 130,000 jobs, according to economists polled by Reuters. The unemployment rate stood at 4.2%, in line with expectations.

"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."

At 08:58 a.m. ET, Dow E-minis YMcv1 were up 453 points, or 1.11%, Nasdaq 100 E-minis NQcv1 rose 217.25 points, or 1.09%, and S&P 500 E-minis EScv1 climbed 66 points, or 1.17%.

Trump's reversal of some tariffs has helped U.S. stock indexes recover from recent losses. The tech-heavy Nasdaq .IXIC closed on Thursday at levels last seen before April 2, dubbed "Liberation Day", when the president unveiled massive global tariffs.

Despite signs of reprieve on the trade front, the rapid shifts 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.O slid 2.7% in premarket trading 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.

"Apple claimed the sort of earnings beat that was never likely to win much favor... at a time when its products business is fraught with uncertainty, it's not great that growth on the services side has disappointed," said AJ Bell investment director Russ Mould.

Amazon.com AMZN.O rose 1.5% after it forecast second-quarter revenue largely above Wall Street estimates.

Oil giant Chevron CVX.N lost 1.1% after its quarterly results, while Exxon Mobil XOM.N was up 1.4% after beating first-quarter profit estimates.

Block XYZ.N slumped more than 22% after cutting its profit forecast for 2025 and missing estimates for quarterly earnings, as the payments firm grapples with muted consumer spending.

Airbnb ABNB.O dipped 2.9% after the vacation rental platform forecast second-quarter revenue largely below Wall Street estimates and signaled softening demand in the U.S.