From Yahoo Finance: 2025-05-04 11:19:00

US stocks soared on Friday, May 2, with the S&P 500, Dow Jones, and Nasdaq all rising almost 1.5%. This marked the S&P 500’s longest winning streak since November 2004. The rally was fueled by positive US jobs data and China’s openness to trade talks.

China’s willingness to engage in trade talks and a robust US jobs report boosted investor confidence. The US economy added 177,000 jobs in April, exceeding expectations. The unemployment rate held steady at 4.2%. These developments eased concerns about the impact of tariffs on the economy.

Hopes for improved US-China relations, solid job growth, and positive trade talk signals lifted Wall Street. China’s commerce minister stated the “door is open” for trade talks if the US reduces reciprocal tariffs. These developments alleviated fears of an economic slowdown due to tariffs.

Johnson & Johnson (NYSE:JNJ) stands out as one of the most profitable cheap stocks to buy. With a forward P/E of 14.73 and TTM net income of $21.81 billion, JNJ is a leader in healthcare innovation. The company’s focus on medicine and MedTech positions it as a top investment choice.

Johnson & Johnson (NYSE:JNJ) reported progress in research and development, launching new products like TREMFYA and RYBREVANT. The company also invested $55 billion in the US over four years to enhance its medical technology leadership. While JNJ ranks 6th in profitability, some AI stocks may offer higher returns.

Investors looking for promising AI stocks should explore options beyond Johnson & Johnson. Some AI stocks have shown stronger growth potential in 2025, outperforming popular choices. Considering AI stocks trading at less than 5 times earnings could lead to investments with greater returns in a shorter timeframe.

Read more: Is Johnson & Johnson (JNJ) The Most Profitable Cheap Stock to Buy Now?