What Happened?

Shares of social network Snapchat (NYSE: SNAP) jumped 8.1% in the afternoon session after the major indices rebounded, with stocks recouping some more of the post-tariff losses as the Bureau of Labor Statistics data revealed a resilient labor market with non-farm payrolls rising by 177,000 in April 2025, significantly above the consensus forecast of 133,000. 

Notably, a stable labor market often supports consumer spending, which is a key driver of economic growth, which means the report could help ease some of the recession fears that gripped markets. In more good news for markets, reports revealed that China may restart trade talks with the U.S. This shift could cool tensions, providing more clarity in an increasingly uncertain global market.

The shares closed the day at $8.45, up 8% from previous close.

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What The Market Is Telling Us

Snap’s shares are very volatile and have had 25 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 24 days ago when the stock dropped 7.1% on the news that markets gave up early gains with optimism over progress in US-China trade talks quickly fading as the Trump administration announced plans to raise tariffs on all Chinese imports to well above 100%. Hopes had been lifted by chatter of constructive negotiations aimed at easing and eventually removing U.S. trade tariffs. But the news confirmed fears of a prolonged trade fight, increasing uncertainty about the direction of economic policy. This left investors grappling with the dual threat of slower growth and higher inflation, both of which could linger if the standoff continues.

Snap is down 25.1% since the beginning of the year, and at $8.42 per share, it is trading 50.9% below its 52-week high of $17.14 from May 2024. Investors who bought $1,000 worth of Snap’s shares 5 years ago would now be looking at an investment worth $492.40.

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