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

US stocks surged on May 2nd with the S&P 500, Dow Jones, and Nasdaq all posting significant gains. This marked the S&P 500’s longest winning streak since November 2004. The rally was fueled by China’s openness to trade talks and a strong US jobs report, alleviating concerns about the trade war.

Merck & Co., Inc. (NYSE:MRK) is among the 10 most profitable cheap stocks to buy now. With a forward P/E of 9.45 and TTM net income of $17.11 billion, the pharmaceutical giant is investing in new facilities to expand its pipeline and production capacity for innovative therapies, making it an attractive investment.

China’s positive response to US trade talks and a better-than-expected US jobs report boosted investor confidence, leading to a rally on Wall Street. The US added 177,000 nonfarm payrolls in April, exceeding expectations, and the unemployment rate remained steady at 4.2%. Optimism for improved US-China relations contributed to the market’s positive momentum.

Investors are encouraged by signs of progress in US-China trade talks, with China evaluating US proposals. The potential easing of tariffs has reduced concerns about an economic slowdown, further boosting market sentiment. Optimism surrounding trade negotiations and strong job growth have fueled hopes for improved relations between the two countries.

Read more: Is Merck & Co., Inc. (MRK) The Most Profitable Cheap Stock to Buy Now?